Magic realism or magical realism is an aesthetic style

Aesthetics

Aesthetics is a branch of philosophy dealing with the nature of beauty, art, and taste, and with the creation and appreciation of beauty. It is more scientifically defined as the study of sensory or sensori-emotional values, sometimes called judgments of sentiment and taste...

 or genre

Genre

Genre , Greek: genos, γένος) is the term for any category of literature or other forms of art or culture, e.g. music, and in general, any type of discourse, whether written or spoken, audial or visual, based on some set of stylistic criteria. Genres are formed by conventions that change over time...

 of fiction

Fiction

Fiction is the form of any narrative or informative work that deals, in part or in whole, with information or events that are not factual, but rather, imaginary—that is, invented by the author. Although fiction describes a major branch of literary work, it may also refer to theatrical,...

  in which magical elements blend with the real world. The story explains these magical elements as real occurrences, presented in a straightforward manner that places the "real" and the "fantastic" in the same stream of thought. It is a film, literary and visual art genre.

One example of magic realism is when a character in the story continues to be alive beyond the normal length of life and this is subtly depicted by the character being present throughout many generations.