Magic methods, also known as dunder methods (short for "double underscore"), are special methods in Python that allow developers to define how objects of a class behave with built-in operations. These methods are prefixed and suffixed with double underscores, such as `__init__` for object initialization and `__str__` for string representation. They enable customization of operations like addition, comparison, and iteration. By implementing magic methods, programmers can create more intuitive and user-friendly classes. For example, defining the `__add__` method allows instances of a class to be added together using the `+` operator. This enhances code readability and allows objects to interact seamlessly with Python's syntax and built-in functions.