"imagined things that are anchored in reality". Painting in a realistic style but using imagination and fantasy to extend the possibilities. Related to Surrealism, but not quite so bizarre or far-stretched.
The term "Magic Realism" was first used in 1925 by the German art historian and critic Franz Roh in his book Nach Expressionismus: Magischer Realismus (After Expressionism: Magic Realism)1. Artists associated with it include Giorgio de Chirico (Italy), Adolf Ziegler (Germany) and Philip Evergood (USA).