Small Open Models Achieve Near Parity with Large Models in Low Resource Literary Translation at a Fraction of the Cost

Literary translation has recently gained attention as a distinct and complex task in machine translation research. However, the translation by small open models remains an open problem. We contribute to this ongoing research by introducing TINYFABULIST TRANSLATION FRAMEWORK (TF2), a unified framework for dataset creation, fine tuning, and evaluation in English-Romanian literary translations, centred on the creation and open release of both a compact, fine tuned language model (TF2-12B) and large scale synthetic parallel datasets (DS-TF2-EN-RO-3M and DS-TF2-EN-RO-15K). Building on DS-TF1-EN-3M (TF1), the largest collection of synthetic English fables to date, we address the need for rich, high quality literary datasets in low resource languages such as Romanian. Our pipeline first generates 15k high quality Romanian references from the TF1 pool using a high performing LLM. We then apply a two stage fine tuning process to a 12B parameter open weight model: (i) instruction tuning to capture genre specific narrative style, and (ii) adapter compression for efficient deployment. Evaluation combines corpus level BLEU and a five dimension LLM based rubric (accuracy, fluency, coherence, style, cultural adaptation) to provide a nuanced assessment of translation quality. Results show that our fine tuned model achieves fluency and adequacy competitive with top performing large proprietary models, while being open, accessible, and significantly more cost effective. Alongside the fine tuned model and both datasets, we publicly release all scripts and evaluation prompts. TF2 thus provides an end-to-end, reproducible pipeline for research on cost efficient translation, cross lingual narrative generation, and the broad adoption of open models for culturally significant literary content in low resource settings.