"The Iliad" and "The Odyssey" are two of the earliest, surviving forms of European and Western literature. Some even have a theory that "The Odyssey" is the sequel to "The Iliad". Unlike many sequels in the present era, "The Odyssey" actually seems to be an improvement in some respects on the original, and stands quite well as an independent work.
Though these two stories were written several years apart they have many similarities which may be the reason some believe "The Odyssey" is a sequel. Homer is known for being the author of both stories. Both stories take place over the course of ten years and many of the characters are alike but take different names depending on which story you're reading. "The Odyssey" makes reference at a number of points to the characters and events of "The Iliad", most notably to the death of Achilles.
Although these two stories do seem very similar as far as characters and events I personally think there are more differences between the two. In "The Iliad", the gods are portrayed as pretty deceptive, temperamental, and backstabbing. There is a lot of sneaking around behind each other's backs to aid one side over the other. Hera wanted the Achaean's to be triumphant, but Zeus tried to remain neutral. Several of the Gods conspired to put Zeus to sleep so they could help the Achaean's win, and the battlefield is essentially one giant chess board for them, with mortals as their pawns.
In "The Odyssey", the Gods seem a little more benevolent. Athena supports Odysseus and tries to assist him whenever she can and they all, except Poseidon, would like to see Odysseus return to Ithaca. They seem more unified and civil in their views on how things (particularly Odysseus making it home) should be handled. Even though Athena was Odysseus staunchest supporter, she did not try to retaliate against Poseidon when he made Odysseus' journey harder and even longer. In "The Iliad", the gods were more activel...