The Collaborative International Dictionary of English v.0.48:

Novelize \Nov"el*ize\, v. t. [imp. & p. p. Novelized; p. pr. &
   vb. n. Novelizing.]
   1. To innovate. [Obs.]
      [1913 Webster]

   2. To put into the form of novels; to represent by fiction;
      to fictionalize. "To novelize history." --Sir J. Herschel.
      [1913 Webster]