The literature of Nicaragua dates back to the pre Columbian period of oral literature and myths, which established the cosmogenic perception of the Nicaraguan people around the world. Until today, some of these myths remain widespread. The myth El Cadejo is very popular in Nicaragua and around the world and adopts a Spanish cultural background. The theory has been founded upon the literary concept of new historicism and upon the Spanish Nicaraguan culture. The literary theory of new historicism is founded upon the idea that literature ought to be studied and understood concerning both the author’s history and the history of the critic, and it not only recognizes the power of the author’s era and environment but that the response of the critics to work is as well swayed by his beliefs, environment, and biases, the decision to use dogs in the myth is by itself an artistic way which symbolizes the author’s surroundings’ they may facilitate both safety and harm.The myth has a black dog that wears a white necklace and which represents an evil spirit. Unlike the white dog, it tries to murder people walking late at night. Though the black dog is hostile, it is incapable of biting, and victims who manage to survive are left with a mental problem. The black cadejo is the embodiment of the biblical world of darkness and evil. Each time that the black and the white dog meet, they battle each other till the white one wins. Primarily, the white dog represents what is good, and the black dog represents what is evil, and goodness always defeats evil. These two cadejos establish the theme of religion in the myth and provide a platform for the two spiritual forces; goodness and evil, to weigh against each other. At this juncture, and as per the concept of new historicism, the author incorporates the religious aspect in a bid to emphasize his religious stand that good has power over evil. Besides, the fact that the black dog normally emerges on those people who are walking in the night or those engaging in acts of immorality or have a negative conscience and conduct. It follows its victims for a while so that it may scare them before it catches and spellbinds them using its big red eyes; it robs off their souls and makes them fools for their remaining lifetime (Jaeck, 118). People who fall victim to the wrath of the black cadejo are alleged to have been frolicked by evil forces. The incorporation of superstitious aspects is typical of the author’s background. The Nicaraguans are quite superstitious people, which may be confirmed by the myths depiction of the dogs as creatures with powers to consume one’s sole. Such superstitious beliefs are common in the Nicaraguan society, culture, and myths and are meant to instill fear against committing certain deeds; in this case, walking at night. The myth is an embodiment of what the local people believe. The people of Nicaragua believe that the black cadejo may be easily scared away when it appears, and that individual is required to burn incense to get rid of it (Jaeck, 138). That demystifies the spiritual dimension that the myth adopts, and which was established during the early times. Moreover, the black dog was only created by the evil one to counter the good deeds of the white dog that God had made; the black dog had been created to act against the will of God. The literature and culture on Nicaragua is one that has been heavily influenced by the Spanish conquerors. The Nicaraguan literature has formed a critical source of Spanish poetry, with universally celebrated contributors (Jaeck, 127). The Spanish influence is very apparent from the way the theme of religion has played out in the myth. In the context of the literary theory of new historicism, the author has put the myth in the setting of his era. Christianity had been introduced in Nicaragua, and the local culture was embracing its teachings differently to exemplify the essence of religion in the life. According to widely held etymology, cadejo is a term believed to have originated from the Spanish. The Spanish origin of the name depicts that there is a huge interconnectedness between the myth and the Spanish background, which proves the concept of new historicism. From the perspective of the local common speech in Nicaragua, cadejo refers to an enormous member of the weasel family, who is often alleged to be the originator of the myth (Jaeck, 115). The association of these cadejos to superstitious powers is an indication that the Nicaraguan culture is superstitious. These superstitious characteristic of the culture in which the author comes from has been exemplified in different sections of the myth, which is a product of the new historicism theory that considers the author’s culture and background in the work. Myths such as El cadejo are very important in the Nicaraguan culture since they comprise characters which are familiar to all the people of Nicaragua. With no doubt, Nicaragua is a nation characterized by numerous instances of cultural display and interesting myths which have remained fascinating over the centuries, exciting legends, spirited music, exclusive proverbs, amusing tales, untold superstitions, exceptional artwork, and most importantly, people who love each other. The utilization of culture and expression of the personal background by the author is an indication that myth has been developed under the influence of the concepts of new historicism. This concept may further be indicated by the theme of love. God has expressed his love for humans by creating the dog so that it would protect humans during the night as they walk through darkness (Argueta, 305). In the Nicaraguan culture and the Spanish culture, both of which form the cultural and environmental setting of the myth, love is one aspect that is accorded utmost priority. The ideals of new historicism enables the learners of the myth to determine its cultural context. The larger proportion of the Nicaragua legends can be traced back to the turbulent era of colonization which saw Nicaragua live under the authority of the Spanish imperialists. In one way or another, the author creates an impression of the environment which was existent at that time, which is a demonstration of ideals of new historicism. The author has managed to consider both his historical background and the environment of critics. The myth has been created with an intention to scare and discourage people, particularly children, from loitering in the dark. It as well places the act of walking at night as a not so positive social behavior in the Nicaraguan society.