Most style manuals will tell you to italicize the title of a book or a motion picture in text or notes—but what about dialogue? Should a title also be italicized when a character mentions it?
Yes.
Examples:
“We’re going to see the latest Star Wars flick. Would you like to come?”
* * *
“You remind me of that character Meg Ryan played in When Harry Met Sally,” Steve said.
“You mean Sally?”
Steve nodded.
“You think I fake orgasms?”
“No, I think you’re high maintenance!”
* * *
“Let’s go get something to eat.”
“Can’t. I’m on a roll.”
“You’ve been working on that every weekend for the past two months. What are you writing, War and Peace?”
“No, The Great Catsby.”