Literary papyri are not just bearers of the texts they preserve, but also material witnesses to the circulation and readership of literature in Graeco-Roman Egypt. As such, they may shed some light on the production practices and functions of these copies: on their scribes, their readers, their uses and reuses in different contexts. Only recently has a full awareness of the importance of these aspects been achieved and, even though attempts at contextualising literary fragments often prove problematic in many ways, the potential rewards of a holistic approach to literary papyri can still be analysed and exploited.