Shakespeare's works were initially closely tied to performance. Actors, theaters, and audiences all helped circulate them, while their later status as literary classics developed gradually.

The First Folio, published in 1623, collected many plays and preserved some that had not previously appeared separately in print. It is an important source for the survival of his texts.

Plays

Most playwrights of the period typically collaborated with others at some point, as critics agree Shakespeare did, mostly early and late in his career.

The first recorded works of Shakespeare are Richard III and the three parts of Henry VI, written in the early 1590s during a vogue for historical drama. Shakespeare's plays are difficult to date precisely, however, and studies of the texts suggest that Titus Andronicus, The Comedy of Errors, The Taming of the Shrew, and The Two Gentlemen of Verona may also belong to Shakespeare's earliest period. His first histories, which draw heavily on the 1587 edition of Raphael Holinshed's Chronicles of England, Scotland, and Ireland, dramatise the destructive results of weak or corrupt rule and have been interpreted as a justification for the origins of the Tudor dynasty. The early plays were influenced by the works of other Elizabethan dramatists, especially Thomas Kyd and Christopher Marlowe, by the traditions of medieval drama, and by the plays of Seneca.

The Comedy of Errors was also based on classical models, but no source for The Taming of the Shrew has been found, though it has an identical plot but different wording as another play with a similar name. Like The Two Gentlemen of Verona, in which two friends appear to approve of rape, the Shrew's story of the taming of a woman's independent spirit by a man sometimes troubles modern critics, directors, and audiences.

Shakespeare's early classical and Italianate comedies, containing tight double plots and precise comic sequences, give way in the mid-1590s to the romantic atmosphere of his most acclaimed comedies. A Midsummer Night's Dream is a witty mixture of romance, fairy magic, and comic lowlife scenes. Shakespeare's next comedy, the equally romantic The Merchant of Venice, contains a portrayal of the vengeful Jewish moneylender Shylock, which reflects dominant Elizabethan views but may appear derogatory to modern audiences. The wit and wordplay of Much Ado About Nothing, the charming rural setting of As You Like It, and the lively merrymaking of Twelfth Night complete Shakespeare's sequence of great comedies. After the lyrical Richard II, written almost entirely in verse, Shakespeare introduced prose comedy into the histories of the late 1590s, Henry IV, Part 1 and 2, and Henry V. Henry IV features Falstaff, rogue, wit and friend of Prince Hal.

His characters become more complex and tender as he switches deftly between comic and serious scenes, prose and poetry, and achieves the narrative variety of his mature work. This period begins and ends with two tragedies: Romeo and Juliet, the famous romantic tragedy of sexually charged adolescence, love, and death; and Julius Caesar—based on Sir Thomas North's 1579 translation of Plutarch's Parallel Lives—which introduced a new kind of drama. According to the Shakespearean scholar James Shapiro, in Julius Caesar, "the various strands of politics, character, inwardness, contemporary events, even Shakespeare's own reflections on the act of writing, began to infuse each other".

In the early-17th century, Shakespeare wrote the so-called "problem plays" Measure for Measure, Troilus and Cressida, and All's Well That Ends Well and a number of his best known tragedies. Many critics believe that Shakespeare's tragedies represent the peak of his art. Hamlet has probably been analysed more than any other Shakespearean character, especially for his famous soliloquy which begins "To be or not to be; that is the question". Unlike the introverted Hamlet, whose fatal flaw is hesitation, Othello and Lear are undone by hasty errors of judgement. The plots of Shakespeare's tragedies often hinge on such fatal errors or flaws, which overturn order and destroy the hero and those he loves. In Othello, Iago stokes Othello's sexual jealousy to the point where he murders the innocent wife who loves him.