All stories originally written in the English language and published in an American or Canadian periodical are eligible for consideration. Individual stories may not be nominated; magazines must submit the year’s issues in their entirety by May 1. Only stories appearing in a printed periodical are considered. No online-only publications are eligible for inclusion.
As of 2003, the series editor chooses the twenty PEN/O. Henry Prize Stories, and each year three writers distinguished for their fiction are asked to evaluate the entire collection and to write an appreciation of the story they most admire. These three writers read the twenty prize stories in manuscript form with no identification of author or publication. They make their choices independent of each other and the series editor.
The goal of The PEN/O. Henry Prize Stories remains to strengthen the art of the short story.