It is argued that Droysen, not Dilthey, is the true father of the method of historical understanding or Verstehen.

The hermeneutic circle (German: hermeneutischer Zirkel) describes the process of understanding a text hermeneutically. It refers to the idea that one's understanding of the text as a whole is established by reference to the individual parts and one's understanding of each individual part by reference to the whole. Neither the whole text nor any individual part can be understood without reference to one another, and hence, it is a circle. However, this circular character of interpretation does not make it impossible to interpret a text; rather, it stresses that the meaning of a text must be found within its cultural, historical, and literary context.