Characters reading fanfiction about themselves? That’s a concept I’ve seen tackled in a few distinct ways. The most common is probably the 'characters react' genre, where Team 7 or the Rookie Nine get plopped in a room and forced to read passages from our world's fics. It’s a massive meta-commentary device. Naruto’s reaction to a dark!Naruto story, or Sasuke’s flat disgust at a fluffy SasuSaku fic, becomes the whole point—it’s less about the plot of the embedded fanfic and more about the characters’ horrified, amused, or confused commentary on the absurd things their fans write.
Another approach is more diegetic and subtle. I remember a story where Shikamaru, trying to understand human unpredictability, stumbles upon a cache of scrolls that are basically in-world analogues of fanfiction—wild 'what-if' histories written by bored monks or scholars. It was framed as a kind of forbidden, speculative archive. That felt more organic than the 'react' trope, treating the fanfiction as a strange, found artifact within their own world’s logic. Sakura, being the studious one, might analyze a medical ninjutsu theory fic for actual techniques, while Naruto would just be baffled by any story where he’s not the hero.
The emotional core varies wildly. Sometimes it’s played for crack comedy—Kakashi reading Icha Icha Paradise but about himself. Other times, it’s genuinely poignant: a character reading a fix-it fic about the Uchiha massacre and grappling with the sheer, desperate hope in that alternate timeline. The mechanism is often hand-waved (forbidden jutsu, weird genjutsu, a summoning scroll from another dimension), but the outcome is a funhouse mirror held up to their canonical selves. It never feels like they’re just 'reading'; it’s an invasive, often chaotic experience that exposes their deepest insecurities and desires through the lens of fandom’s obsession.