This article explores the themes of alienation and inner exile in Virginia Woolf’s novel Mrs Dalloway through a modernist literary framework. It analyzes how Woolf represents psychological fragmentation, post-war trauma, and existential disconnection through the inner experiences of Clarissa Dalloway and Septimus Warren Smith. Using close reading and thematic analysis, the study demonstrates that alienation in the novel operates both as a social condition and a deep psychological state rooted in modern identity crisis. The research highlights Woolf’s innovative narrative techniques, particularly stream of consciousness and temporal fluidity, as essential tools for depicting fragmented consciousness in post-World War I society.