Magical realism is associated with incorporating magical or supernatural events into realistic narrative without questioning the improbability of these events. This fusion of fact and fantasy is meant to question the nature of reality as well as draw attention to the act of creation. By making the lived experience appear extra-ordinary, magical realist writers contribute to a re-envisioning of culture as vibrant and complex.

​Rushdie‟s principal use of magical realism in the text involves the telepathic abilities of Saleem and the other 1001 children born at the stroke of midnight on August 15, 1947- the abilities that enable them to read the minds of those around them.