The Age of Idealism produced more talented authors than any other period of German literature, in fact some of the greatest German authors wrote during this age. The age is split up into three movements: Sturm und Drang (Storm and Stress), classicism, and romanticism all of which stressed idealism rather than realism.

Sturm und Drang was the first movement of the Age of Idealism. It took its name from Friedrich Maximilian von Klinger's play "Sturm und Drang" (1776). He was one of many young authors which included Johann Wolfgang von Goethe (see also classical movement), Friedrich Wilhelm Joseph von Schiller (see also classical movement), who were inspired by the German philosopher Johann Gottfried von Herder to abandon rationalism and conformity and to instead use elements of national or folk lore.

The Sturm und Drang period was a stepping stone for Schiller and Goethe into the next movement. With the experience of the the previous movement, they collaborated together to integrate the ancient classical tradition into German romanticism.

Goethe produced many works during the classical movement including his best known and widely performed "Faust", "Iphigenia in Taurus" and "Torquato Tasso" which explored humanism, and "Wilhelm Meister" which shaped future German novels.

Schiller choose to express the ethical and intellectual beliefs of the time. Works like "Maria Stuart", "Wallenstein", "Wilhelm Tell", and "Die Jungfrau von Orleans" helped illustrated these beliefs.

The romantic movement combined some aspects of the Sturm und Drang movement along with some of those of the classical movement, and emphasized individualism and the inner workings of humans. Goethe and Schiller continued to work into this movement, however many others joined them: Friedrich Hölderlin whose "poems achieved a synthesis of ancient Greek forms and modern sensibility", Heinrich von Kleist "who expressed his chaotic view of the world in passionate dramas and powerful short stories", and humorist Johann Friedrich Richter.

Many writers joined together and formed literary circles in the major cities. The first circle was in Jena: August Wilhelm von Schlegel (who translated works of Shakespeare into German, most noteably, "Julius Cäsar") and Friedrich von Schlegel, the mystic Novalis, and poet Ludwig Tieck. Circles were formed in Berlin and Heidelberg which included such authors as: Achim and Bettina von Arnim, Clemens Brentano, Joseph and Freiherr von Eichendorff, and Ernst Theodor Amadeus Hoffmann.

Other notable romantics included: Nikolaus Lenau, Ludwig Uhland, Friedrich Ernst Daniel Schleiermacher, and Friedrich Wilhelm Joseph von Schelling.

Towards the end of the romantic movement, two writers stood out: Heinrich Heine and Eduard Mörike. Politically motivated, they formed a movement known as Young Germany and challenged the surviving feudalism of the time.