Myths are mysterious phenomena. They are the symbolic projections of people's hopes, values, fears, and aspirations. They are at once provincial and yet universal. Though they belong to a pre-literate and pre-historical era, they keep recurring in all ages and are a part of our contemporary society. Myth is not to be equated with literature, but there exists a symbiotic relationship between the two. Setting a different trend, post-modem myth criticism as well as mythical literature replaces the classical (Greek and Roman) myths by local myths and interweaves ancient myths and modern stories, attributing a splendid, contemporary colour. In the article, I have dealt with the application of myth and archetypes by Margaret Atwood in her novella, The Penelopiad and an effort has been made to vindicate 'the melancholic feminist voice' of Penelope and the maids. The paper also seeks to examine the 'epic distance' and the mythical method from a postmodern perspective