Virgil's Aenead was overtly fictionalized; it was basically an alternate history version of Homer's work, that inserted Roman characters and themes to recast the story as foundational to the Roman republic.
Literature
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Lucian of Samosata's A True Story parodies the trend of his contemporaries trying to pass of their outlandish fabrications as fact.
It's also the earliest known depiction of space travel, aliens, and interplanetary warfare.
The Tale of Sinuhe is an ancient Egyptian story about 4000 years old so that might fit the bill? :)
I haven't read it myself yet though I've got it laying around here somewhere.
It's certainly interesting! Definitely a glimpse into a very distant culture.
It might just have to reclaim it's spot on my night stand again soon. :)
Modern genres don't really apply to ancient literature. Mythical, historical, symbolic and real are mixed and you're expected to be reading or listening to the literature from within the tradition which would give you the context for knowing which is which.
Beowulf is myth, but also history. It has references and genealogy to real figures, but it is embedded within a myth that records the meaning of that history. It's full of symbolic retelling of that history.
Narrow, literalist readings of Jewish writings collected in the Ketuvim (Writings) section of the Tanakh (Torah, Nevi'im, Ketuvim) fit that.
There wasn't a hard distinction between learning and leisure like we pretend there is today. A story could have a kernel of historical truth, or perhaps a lot, or none at all; convey important truths about society, the world and our place in it; and be told dramatically to capture attention (ie entertaining) so listeners pay attention to those truths and remember them in difficult situations.
Jewish tradition is to look for 4 levels of meaning in a text, including allegorical and hidden meanings as well as the general plot. Even those who believe the surface level as literally true spend most of their time working with interpretation, what lessons we can learn from the stories.
Then along comes a Greek proselytiser who insisted the particular salvation religion he followed was literally True and therefore better than other salvation religions. And that literalness got read back into a different people's texts, came to be seen by most of the world as the only way to read them and here we are today.
Journey to the West from China. Story of Monkey, good stuff!
I don't think anyone ever mistook Beowulf (c. 700–1000 AD) for nonfiction, but just wanted to mention that if you've read it and enjoyed it, you might like Grendel, a modern retelling of Beowulf from the monster's perspective.
Btw it's really fun to get a side-by-side Modern English and Old English edition of Beowulf and compare them. Wild how much language can change in that time span.
The Source by James Michener!! It is the journey of religion throughout the middle east up until modern day.
The Metamorphoses (aka The Golden Ass) by Apuleius.