Blake's work was neglected for a generation after his death and almost forgotten when Alexander Gilchrist began work on his biography in the 1860s. The publication of the Life of William Blake rapidly transformed Blake's reputation, in particular as he was taken up by Pre-Raphaelites and associated figures, in particular Dante Gabriel Rossetti and Algernon Charles Swinburne. In the twentieth century, however, Blake's work was fully appreciated and his influence increased. Important early and mid twentieth-century scholars involved in enhancing Blake's standing in literary and artistic circles included S. Foster Damon, Geoffrey Keynes, Northrop Frye, David V. Erdman and G. E. Bentley, Jr.
While Blake had a significant role to play in the art and poetry of figures such as Rossetti, it was during the Modernist period that this work began to influence a wider set of writers and artists. William Butler Yeats, who edited an edition of Blake's collected works in 1893, drew on him for poetic and philosophical ideas, while British surrealist art in particular drew on Blake's conceptions of non-mimetic, visionary practice in the painting of artists such as Paul Nash and Graham Sutherland. His poetry came into use by a number of British classical composers such as Benjamin Britten and Ralph Vaughan Williams, who set his works. Modern British composer John Tavener set several of Blake's poems, including The Lamb (as the 1982 work "The Lamb") and The Tyger.
Many such as June Singer have argued that Blake's thoughts on human nature greatly anticipate and parallel the thinking of the psychoanalyst Carl Jung. In Jung's own words: "Blake [is] a tantalizing study, since he compiled a lot of half or undigested knowledge in his fantasies. According to my ideas they are an artistic production rather than an authentic representation of unconscious processes." Similarly, although less popularly, Diana Hume George claimed that Blake can be seen as a precursor to the ideas of Sigmund Freud.
Blake had an enormous influence on the beat poets of the 1950s and the counterculture of the 1960s, frequently being cited by such seminal figures as beat poet Allen Ginsberg, songwriters Bob Dylan, Jim Morrison, Van Morrison, and English writer Aldous Huxley. Much of the central conceit of Philip Pullman's fantasy trilogy His Dark Materials is rooted in the world of Blake's The Marriage of Heaven and Hell. After World War II, Blake's role in popular culture came to the fore in a variety of areas such as popular music, film, and the graphic novel, leading Edward Larrissy to assert that "Blake is the Romantic writer who has exerted the most powerful influence on the twentieth century."