In the novel category, the shortlisted titles are The Last King of Lydia by Tim Leach and Call it Dog by Marli Roode (both published by Atlantic) and Beneath the Darkening Sky by Majok Tulba (Oneworld).
In the short story category, Battleborn by Claire Vaye Watkins (Granta) and The Gurkha's Daughter by Prajwal Parajuly (Quercus) have been chosen, while in the poetry section Sins of the Leopard by James Brookes (Salt Publishing) and The Shape of the Forest by [pictured] Jemma King (Parthian) are the finalists.
The prize is now in its seventh year, rewarding the debuts of any writer working in English under the age of 30.
The judges for this year's prize are Hay Festival founder Peter Florence; columnist Allison Pearson; musician Cerys Matthews; author Carolyn Hitt; artist Kim Howells; journalist Nicholas Wroe; poet Kurt Heinzelman; and the chairman of the prize, Peter Stead.
Judging panel chair Peter Florence said: "We had such a strong shortlist this year that we had to include a seventh title, as they are all contenders. In all my years on the judging panel of the prize, I've never seen a higher standard of entry from young writers."
Stead said: "The seven books on this year’s shortlist indicate the truly international scope of the Dylan Thomas Prize. There are two young poets, one English, one Welsh and five prose writers from around the world whose stories take us to Nepal, war-torn Sudan, South Africa, Nevada and the Near East of Classical times."
The prize is sponsored by Swansea University.
The winner will be announced in November.