Magical realism, also known as magic realism or marvelous realism, is a genre of literature that blends elements of fantasy and reality. This type of writing originated with Latin American authors like Gabriel Garca Márquez and Isabel Allende during the 1920s and 1930s. In magical realist texts, fantastical events are presented as normal occurrences with little to no explanation given by the author. These stories often involve dream-like sequences where characters experience moments out of time or explore supernatural realms. Despite their otherworldly settings, they remain grounded in everyday life and include realistic details about human behavior and emotions while providing an insight into larger social issues such as poverty, violence, racism, colonialism, etc. By combining aspects of fantasy with concrete realities from our world today, these authors create unique narratives that challenge traditional notions about what it means to be "real".

The term "magical realism" was first coined by German art critic Franz Roh in 1925 to describe a new visual style found within painting at the time that blended elements from both surrealism and expressionism into one artwork. It wasn't until several decades later that this same concept was applied to literature through writers such as Jorge Luis Borges, who began experimenting with ways he could use fantastic yet believable plot devices within his stories, thus giving birth to the modern form we now know as magical realism in literature.

Unlike works belonging strictly to either category (fantasy or reality), magical realist texts don't focus on creating elaborate worlds filled with mythical creatures but instead tell stories set against more recognizable landscapes populated by ordinary people facing extraordinary circumstances. A common example can be seen in Gabriel Garcia Marquez's novel One Hundred Years Of Solitude, where mysterious phenomena such as rainstorms made entirely out of butterflies occur alongside mundane tasks like washing dishes without any attempt being made at explaining why these events happen. This juxtaposition creates a heightened sense of awe around everyday life, something that has been echoed throughout countless literary works ever since, including Toni Morrison's Beloved, Salman Rushdie's Midnight Children, and Chimamanda Ngozi Adichie's Half Of A Yellow Sun, among many others, all drawing upon similar themes for inspiration despite coming from different cultural backgrounds.

By presenting readers with situations that appear simultaneously familiar yet strange, magical realists offer us alternative perspectives on how we perceive our own lives, allowing us to see beauty even amidst suffering or hope even amongst despair, offering comfort while still challenging us intellectually along the way. Ultimately, it remains one of the most interesting genres within contemporary fiction because its scope extends far beyond just escapism, pushing boundaries between what is considered possible and impossible while leaving plenty of room for interpretation, depending on the reader themselves.