If on a winter's night a traveler, by Italo Calvino, is my new favorite novel by an anarchist. I loved this book, but at this moment I don't want to say why.
My favorite anarchist (graphic) novel is The Invisibles by Grant Morrison, which I can't recommend highly enough. I appreciate especially the cosmic (or magical, or psychedelic, call it what you will) portrayal of the battle between the anarchist forces and the forces of control. The way these worlds are linked is very artfully done IMO.Things as They Are; or, The Adventures of Caleb Williams, written by the first western anarchist theorist, William Godwin, is remarkably enjoyable especially considering its age. In it Godwin tries to develop anarchist ideas in a different form than the dry political theory of his major work Enquiry Concerning Political Justice. It is also considered the first thriller... Anyway I enjoyed it.[edited to say more about The Invisibles] [edit 2: added Calvino... and omg the new software supports italics!]