The O. Henry Prize is an annual award given for outstanding short stories published in the United States. Established in 1919, it honors the legacy of the American author O. Henry, known for his witty and clever storytelling. The prize aims to recognize the best short fiction and is awarded by a panel of judges who select stories from various literary magazines. Winners of the O. Henry Prize receive a monetary award and are included in an anthology that showcases the selected stories. The prize has become a prestigious accolade in the literary community, celebrating the art of short storytelling and encouraging new writers.