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In 1930 Sinclair Lewis won the Nobel Prize in Literature, the first writer from the United States to receive the award, after he had been nominated by Henrik Schück, member of the Swedish Academy. In the Academy's presentation speech, special attention was paid to Babbitt. In his Nobel Lecture, Lewis praised Theodore Dreiser, Willa Cather, Ernest Hemingway, and other contemporaries, but also lamented that "in America most of us—not readers alone, but even writers—are still afraid of any literature which is not a glorification of everything American, a glorification of our faults as well as our virtues," and that America is "the most contradictory, the most depressing, the most stirring, of any land in the world today." He also offered a profound criticism of the American literary establishment: "Our American professors like their literature clear and cold and pure and very dead."

After winning the Nobel Prize, Lewis wrote eleven more novels, ten of which appeared in his lifetime. The best remembered is It Can't Happen Here (1935), a novel about the election of a fascist to the American presidency.