- "How do you creatures work?"
- ―Agent Lambwood 
Magical Creatures is the term referred to all lifeforms that are born with inherent magical properties that allow them to manipulate the world around them or who are born out of magic itself. The existence of magical creatures and of magic itself is largely unknown by ordinary people, and most creatures either live amongst the masses or live in magical dimensions. 
In the distant past a highly advanced civilization known as Atlantis ruled most of Europe and North Africa but at some point, it sunk below the seas. 
After the fall of Atlantis, humanity would rise again guided by wizards, who possibly used their powers to help humanity in its early scientific conquests. But, due to the misuse of the powers by some wizards, the non-magic humans turned against them. The persecution would be so great that wizards created a wizard world, which is a parallel, but independent, dimension adjacent to Earth. Soon other magic creatures followed and, without any proof of the existence of magic left, humans would embrace science. 
In 2011, Earth was shaken by two events:
- the stealing of the Moral Compass by the Angels of Darkness who used it to turn all humans evil; 
- the near destruction of Earth by an asteroid;
In a not so distant future, magic will be exposed to the world. 
Most magical creatures resemble humans or mainstream animals, such as lizards, eagles, lions, wolves, and so forth. Actually most magical creatures seem to be the mixture of ordinary animals, such as Dragons who mostly resemble a large lizard with the addition of the horns and the bat wings. 
Others, such as the Cucuy, are mostly humans except when they supernaturally shift to their cucuy face. 
Magical Powers & Abilities
Obviously, the most important and widely known property of magical creatures is the fact that they possess magic and supernatural powers. Some creatures' powers can be specific, such as the Dragon's ability to breathe fire or the vampire's ability to turn into a bat. 
Other powers are rather unspecific, such as Wizards' ability to do almost anything through spells. Some magical creatures might not possess actual powers and just have their strength, agility and speed increased, but always above human capability. 
Type and list of magical creatures
Magical creatures that appear in Wizards of Waverly Place can be classified into the following categories.