The subject of this research is the negative-axiological, satirical layers of the novel “The Islanders”, associated with the image of the demonic character, which M. Y. Lermontov turned into the archetype and poetic myth in the Russian literature. The object of this research is the stylistic techniques and ideological motifs of N. S. Leskov underlying “desacralization” of the romantic myth. The author meticulously examines the following aspects: 1) role of Lermontov's poem “The Demon” and romantic poetry of the 1840s in creation of the myth of the demonic character; 2) semantic deformations that led Leskov to wander from the conventional meanings of the myth ; 3) satirical modus used as the key technique in creation of the the image of Istomin. Particular attention is given to Leskov’s satire in its function of “recoding” of the myth. The conclusion is made that the image of the painter Istomin is appointed with the task to dispel the romantic myth. Therefore, the axiological-emotional lexis, as well as elements of satire that reflect the point of view of the “subjective” narrative are arrayed around him. All of that imparts semantic transparency to the character, which contradicts the “mysterious code” of the myth of romanticism. The author’s special contribution consists in the establishment of correlation between the myth of about the demon and the myth of Prometheus, which is important for assessing the complexity and multifacetedness of the semantic core of the phenomenon under review. The novelty of this research lies in revelation of underlying motif of the satirical style of N. S. Leskov. Its point is not to create a “myth about the myth” or an “anti-myth”; the novel forms the “non-myth” to achieve complete elimination of the literary myth of the demonic character. The writer uses satire for typification, rather than individualization of the character.