Literary works play a crucial role in enhancing students’ literacy and character development; however, the integration of moral, social, and hegemonic values in literary learning remains underexplored in secondary education. This study aims to analyze the moral, social, and hegemonic values contained in the novel Bendera Setengah Tiang by Annisa Lim and to examine their contribution to improving students’ literacy. This research employed a qualitative descriptive method. The data consisted of textual quotations representing moral, social, and hegemonic values obtained through an in-depth reading of the novel. The findings reveal 52 quotations reflecting moral values, including courage, solidarity, responsibility, empathy, religiosity, sacrifice, and principled determination. In addition, 22 quotations embody social values such as social responsibility, leadership, mutual assistance, family affection, and collective commitment. Moreover, 22 quotations demonstrate forms of hegemony manifested through structural domination, institutional sanctions, intimidation, suppression of press freedom, and resistance to injustice. These findings indicate that the novel not only portrays social conflict and power relations but also provides meaningful moral and social messages. Therefore, the novel can serve as contextual literary teaching material to enhance students’ critical reading skills, reflective thinking, empathy, and character development in senior high school education (SMA).