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What is Magical Realism? Magical Realism is a sub-genre of Realism. It includes books that are a bit genre bending and hard to categorize. It often features worlds very similar to ours that have a little dash of the fantastical. Differing from Urban Fantasy, these fantastical elements are not considered weird or abnormal but are rather a normal or given part of society and the world the characters live in. Magical Realism doesn't have enough fantastical elements to be counted as Fantasy or Science-Fiction.