Question:
Is it permissible to write novels, and will the money earned from it be halal money?
Answer:
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
In principle, it is permissible to write a novel so long as the narrative is based on a known event.  It should not be a mere fantasy.
If the material does not have a well-established root or history and it is merely a tale, it must be beneficial and portraying positive messages and guidance.
If one writes an account of a known event, it will be disliked to add or delete occurrences to the episode.[1]
With regards to the income accrued from such a profession, it will be Halāl if the written novel is of a permissible nature.  If the novel is of a disliked nature, the subsequent income originating from the proceeds of selling such a book will also be disliked.
And Allah Ta’ālā Knows Best
Mufti Faraz al-Mahmudi,
Darul Iftaa
Dublin, Ireland
www.darulfiqh.com