Magic in fiction is the endowment of characters or objects in works of fiction or fantasy with powers that do not naturally occur in the real world.
The Magic Circle, 1886 by John William Waterhouse
A fairy tale is a short story that belongs to the folklore genre. Such stories typically feature magic, enchantments, and mythical or fanciful beings. In most cultures, there is no clear line separating myth from folk or fairy tale; all these together form the literature of preliterate societies. Fairy tales may be distinguished from other folk narratives such as legends and explicit moral tales, including beast fables. Prevalent elements include dragons, dwarfs, elves, fairies, giants, gnomes, goblins, griffins, merfolk, monsters, talking animals, trolls, unicorns, witches, wizards, magic, and enchantments.
The European fairy tale Little Red Riding Hood and the Wolf in a painting by Carl Larsson in 1881.
Hop-o'-My-Thumb and the ogre in an 1865 illustration
A picture by Gustave Doré of Mother Goose reading written (literary) fairy tales
Ivan Bilibin (1876-1942)'s illustration of the Russian fairy tale about Vasilisa the Beautiful