Magical Creatures are all that use magic, posses magical powers and are magical in origin. Magical Creatures live in the Disney Multiverse but their very existence is kept hidden from humans. Magical beings tend to live in enchanted and enclosed areas, where humans can't reach.
Kind of Magical Creatures
Magical in origin
Creatures who are born out of magic itself tend to be long lived (if not immortal), to be tied to a certain aspect of nature (normally forests, trees, life, weather or the four elements) and to belong to either good or evil. Creatures of Magic include:
Bound to certains aspects of nature (lightning, death, harvests, fertility) or humanity (love, war, wisdom, witchcraft), the Olympian Gods (and possibly other godly beings) rule over the Earth and all beings that live in it.
Beings of great magical power, Dragons are the protectors of everything or everyone magic. Dragons posses many powers, along flight, super strength, create copies and control over elements.
However, some dragons are monsters or villainous.
Protectors of nature and helpers of people, fairies are powerful magic beings that use their powers to help people and the forces of nature.
Genies are magical spirits bound to an object that serves as their prison (like oil lamps or perfume bottles). Once their lamps are rubbed by a person, the genie is released but still bound to the lamp and other rules, limitations, etc. To the person who rubbed the lamp, the genie must grant no more than three wishes (any wish that doesn't conflict with the rules) and once the wishes are fulfilled, the genie is sucked back into its lamp until the next person rubs it. A genie can only be freed if their current master uses a wish to set them free.
Witches are humans who learn to master the powers of magic through potions and spells. Witches are the most common magic users on Disney. They use spellbooks to channel the supernatural and potions and all kinds of spells, charms and incantations to cause actual changes in the world.
Like witches, wizards are human pratitioners of magic, learning various arts of magic and sorcery, using spells, potions, talismans, etc.