Is Luke 16:19-31 a parable or real event?

from the old testament

• The parable of the rich man and Lazarus is not found in the Old Testament.

from the new testament

• Luke 16:19–31 is a story about a poor man named Lazarus and a man simply called “rich man." After they die, the rich man finds himself in Hades in torment, whereas Lazarus is in a place of rest, called "Abraham's side" (vv. 22-23). The story communicates that after death, one's state is fixed (Luke 16:26).
• The question is whether this story is an actual event or a parable. Whether a real event or a fictional story, the passage accurately represents the permanence and judgment after death (Hebrews 9:27). Readers can learn from it in much the same way we would any of Jesus' teachings.
• The key argument to support the "parable" interpretation of Luke 16:19-31 is its placement following another parable. Luke 16:1–13, the parable of the dishonest manager, leads to the Pharisees ridicule Jesus. Jesus responded by teaching about the fate of the “rich man” who also loved money in this life but found himself in Hades in the afterlife.
• Many also point out that the Luke 16:19-31 passage uses a narrative opening similar to many other parables (Matthew 18:23–35; Luke 12:16–21, 18:9–14). And like many of the other paragraphs, Luke 16:19-31 has a single clear moral lesson (Matthew 22:1–14; Luke 10:30-37).
• Others are unconvinced that it is a parable because, despite its placement, it differs in form from parables. The key difference is that it names one of the characters (Lazarus). Even in another of Jesus’ more elaborate parables, the Good Samaritan (Luke 10:30–37), the man who built a bigger barn (Luke 12:16-20), and the Prodigal Son (Luke 15:11-32). Jesus did not name a single character.
• Another difference indicating it may not be a parable is that it is also not structured like other parables, such as having no reference to the kingdom of God (compare with Matthew 13:24, 31, 33; Luke 14:16; Mark 4:26).

implications for today

Where are you headed? Most people can immediately rattle off where they plan to go that day, but what about for eternity? Are you as certain? Most people think they are going to heaven, but Jesus says that, in fact, the majority will go to hell.  He noted that the opening to hell is wide, with plenty of room, and easy to find (Matthew 7:13), but the way to heaven is narrow, with few finding it (Matthew 7:14). And He gives a glimpse of what both are like in Luke 16:19-31.

The question of whether Luke 16:19–31 is a parable or a historical account is less important than the question the Philippian jailer asked Paul and Silas: "Sirs, what must I do to be saved?" (Acts 16:30). And the answer he got is the same one we give today: " Believe in the Lord Jesus, and you will be saved . . ." (Acts 16:31; cf. John 14:6).

Jesus, fully God and fully man, took on humanity and was exactly like us except without sin (Hebrews 4:15). Because He had no sin, He had no judgment hanging over Him.  That allowed Him to take our place by dying for our sin. He was also fully God, meaning His sacrifice was sufficient to cover an infinite number of people. Though Jesus died for all, He will not force salvation on anyone. We must believe in Him to be saved. Jesus is the only way. You can receive the gift of salvation and assurance of your final destiny by repenting of your sin and trusting in Jesus as your only hope of escape (Romans 10:9–10). Eternity is not decided after death—it is decided by what we do with Christ today.