The term magic realism was invented by German photographer, art historian and art critic Franz Roh in 1925 to describe modern realist paintings with fantasy or dream-like subjects.
The term was used by Franz Roh in his book Nach Expressionismus: Magischer Realismus (After Expressionism: Magic Realism).
In Central Europe magic realism was part of the reaction against modern or avant-garde art, known as the return to order, that took place generally after the First World War. Magic realist artists included Giorgio de Chirico, Alberto Savinio and others in Italy, and Alexander Kanoldt and Adolf Ziegler in Germany. Magic realism is closely related to the dreamlike depictions of surrealism and neo-romanticism in France. The term is also used of certain American painters in the 1940s and 1950s including Paul Cadmus, Philip Evergood and Ivan Albright.
In 1955 the critic Angel Flores used the term magic realism to describe the writing of Jorge Luis Borges and Gabriel García Márquez, and it has since become a significant if disputed literary term.