As Richmond Noble implies, Shakespeare's The Merchant of Venice echoes the parable of the prodigal son from Luke chapter 15. Starting with the assumption that there is a close relationship between The Merchant of Venice and the parable of the prodigal son, this paper will thoroughly examine the similarities in plot and structure between them in order to establish the parable as a major component in Shakespeare's conception of the play and to provide sufficient background for the analysis that follows. Reviewing the medieval allegorical interpretations of the parable, we will demonstrate how The Merchant of Venice echoes them. Analyzing the relationship between Shylock and the older son in the parable, we look into the two opposite theories about the character of Shylock. The opening scene of The Merchant of Venice echoes the reconciliation of prodigal and his father. There are similarities between Bassanio and the younger son in the parable. Bassanio is the principal prodigal figure in the play. Antonio's position in the play as Bassanio's father figure whose money Bassanio has unwisely spent corresponds to the father from the parable. Additionally an equally striking parallel lies between the ordering of the fatted calf and Antonio's stake of a pound of flesh for the necessary sum. The fatted calf is the flesh which the father sacrifices in order to facilitate the return of his son and their mutual reconciliation. Antonio's function corresponds to those of the father and the fatted calf, a dual function which corresponds to the medieval allegorical interpretation of the parable's father as God the Father and the fatted calf as God the son. Shylock's function corresponds to the older son's in the parable. His speech complaining to Antonio bears similarities to the older son's. Sufferance is also a link between Shylock and the older son. Both the older son and Shylock express surprise at their father's behavior. Shylock's response to Bassanio's invitation corresponds to the older son's refusal to participate in the revels that mark his brother's return. There is a close relationship between The Merchant of Venice and parable of the prodigal son. Shylock corresponds to the older son, as the father sympathizes with the older son's complaint in the parable, so Shakespeare does not present Shylock as a villain or a cruel Jewish moneylender but as a scapegoat of racial prejudice. The Merchant of Venice can not be regarded as the unambiguous triumph of good Christians over a bad Jew, but a denunciation of the fulfillment of the tragic history of the Jews prophesied in the Bible.