What literary term refers to when a character experiences a sudden realization about themselves or their situation?

The term that best describes a character experiencing a sudden realization about themselves or their situation is "epiphany." An epiphany often occurs at a pivotal moment within a narrative when a character gains new insight or understanding, leading to a change in perspective or behavior. This moment of clarity can be transformative for the character, deeply affecting their thoughts and actions moving forward.

In contrast, the climax refers to the peak point of tension or conflict within the narrative, not necessarily involving self-realization. The resolution is the part of the story where conflicts are resolved, and the outcomes for characters are established, which may follow an epiphany but is not the same. A prologue serves as an introduction to the story, providing background information or context, and does not involve character development or realization. Thus, "epiphany" accurately captures the essence of a character's sudden insight.