Magic is the delightful thread that runs through the tapestry of A Midsummer Night's Dream. Magic is about the supernatural elements of the mythic and fairy world (like Cupid's arrows on a starry night), but it's also a simpler, more natural force. There's the magic of love, the magic of the morning dew, and even the magic of poetry and art.
The play stresses perspective so much that it eventually eggs the reader on to see the world as a different place through each of the characters' eyes. Each character has his or her own perspective, and so experiences the magic differently. Bottom finds his wondrous dreams to be magical, while the lovers, arguably the most impacted by magic, are totally oblivious to it. Titania finds magic in her love of a little boy, and Oberon embraces the magic of the supernatural elements in the seemingly natural world. Magic is certainly in the eye of the beholder.
In this play, Shakespeare suggests that magic is real. It may not be the stuff of fairies, but it is present in the imagination. Particularly for a poet, the world is a magical place, and A Midsummer Night's Dream's language, imagery, and wonder communicate that to the audience.
The magical world exists in harmony with the natural world in A Midsummer Night's Dream – indeed, they are one and the same.