Magic realism: blending fantastic or mythical elements in a matter-of-fact way into seemingly realistic fiction. The term magic realism is relatively recent, being first applied by Cuban novelist Alejo Carpentier, in the 1940s, when he recognized this style in much Latin-American literature. Among the Latin-American magic realists are Gabriel García Márquez, Jorge Amado, Jorge Luis Borges and Isabel Allende.
Magic realism is also described as an aesthetic style of fiction, which mixes magical elements with the real world. The narrative explains such magical elements as real occurrences, presenting them in a straightforward manner that places reality and the fantastical in the same stream of thought.
Salman Rushdie famously uses the technique in The Satanic Verses to great effect.