(Image: PA)
Irvine Welsh, Armando Iannucci and Young Fathers are among the signatories of an open letter to the government in support of Sally Rooney.
The Irish author's books have been removed from sale in the UK due to her support for Palestine Action.
The group was proscribed as a terror organisation last year and Ms Rooney said she intended to continue using her royalties to support them.
In a statement to BBC News, Rooney said further publication of her work could constitute a "serious criminal offence", so she had agreed with her publisher Faber not to continue supplying her books to UK retailers.
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Published in the New Statesman, an open letter from leading authors, artists and public figures has called on Westminster to amend the legislation, which they say is acting as a censor on the author.
As well as Mr Iannucci, Mr Welsh and Young Fathers the letter has been signed by Pulizter Prize winner Benjamin Moser, recently author of Antizionism: A Jewish History; Kneecap, Gary Lineker, Jonathan Glazer and Tilda Swinton.
The statement says: "Sally Rooney is a writer, not a terrorist. Her books must be available to the public. Their withdrawal from sale, on the basis of ill-conceived and draconian anti-terror legislation, is an affront to basic principles of free speech and expression so long taken for granted in this country.
"We categorically reject censorship – whether direct or indirect – and urge the government to change course, amending the legislation which has led us to this point of repressive absurdity."
Figures have revealed that half of all terrorism-related arrests since 9/11 came in the 12 months since Palestine Action was proscribed.
Those arrested include many in Scotland, some of whom were arrested and charged under the terror act for holding signs or wearing t-shirts with the words 'Genocide in Palestine, time to take action'.
As first reported by The Herald, Counter Terror Policing advised in a briefing document that this would not be an offence under the Terrorism Act in England and Wales, and the Crown Prosecution Service would not proceed with any trials based on it, but dozens of cases are proceeding against people north of the border who had the signs.
The latest appeal in a legal challenge against the proscription will be heard at the High Court in December.
The UK Government's ban was initially declared unlawful, but that was overturned on appeal.
Palestine Action co-founder Huda Ammori has been given leave to appeal that decision.