alternate term: magic realism
“A worldwide twentieth-century tendency in the graphic and literary arts, especially painting and prose fiction. The frame or surface of the work may be conventionally realistic, but contrasting elements—such as the supernatural, myth, dream, fantasy—invade the realism and change the whole basis of the art” (Source: Harmon & Holman, 304).
A term introduced by the Cuban novelist Alejo Carpentier, who “saw in magic realism the capacity to enrich our idea of what is ‘real’ by incorporating all dimensions of the imagination, particularly as expressed in magic, myth, and religion” (Source: Benet’s, 635).
Example: Snow in August by Pete Hamill.