Latin America largely remained Spanish colony for over three centuries. Argentina compared to other Spanish colonies is an advanced country, facing challenges associated with modern life style. The paper studies and evaluates the basis Ernesto Sabato employ to highlight the isolation, alienation and absurdity of a modern man in his novel 'The Tunnel'. The novel is grounded in the colonial past of Argentina, conditions of settler colonialism, modernism and French philosophy and wisdom. It concludes that among the abundance of material resources and ideologies of 20th century, individuality of a person and its existence is facing an existential threat.