The name for the band was chosen, according to founding member Txus, because "life is a yellow brick road, on which we walk in the company of others searching for our dreams.

They recorded several demos: Y qué más da (in 1989), Canción de cuna para un bohemio (1990), and Con la cabeza bien alta, in 1992.

Mago de Oz saw a huge surge in popularity across Spain following the release of the album, which was promoted with the "Via Crucis Tour".

Towards the end of 1999 Mägo de Oz started writing and recording a double album named Finisterra, released in 2000.

The live tour supporting this album featured more elaborate stage production, with more sophisticated sets, pyrotechnics, and lights.

In 2004, Mägo de Oz returned to the studio to record Belfast named after the city in Northern Ireland and the numerous sectarian conflicts that have taken place there.

The band recorded a metal version of "La Rosa de los Vientos" as well as adding some orchestral parts to certain earlier songs.

After "La Posada de los Muertos" came the "Hoy Toca Ser Feliz" and "Diabulus in Musica".

"Hoy Toca Ser Feliz" was accompanied by a video with the members of the band dressed as the characters from The Wizard of Oz, Txus drumming in costume as Glinda the Good Witch, with giant wings.

During the tour for Gaia II, Txus temporarily left the band due to extreme exhaustion and personal problems.

In late 2011, lead vocalist and keyboardist José Andrëa left Mägo de Oz, citing personal problems and differences with the band.

In 2013, Mägo de Oz released Hechizos, pócimas y brujería in double vinyl and digibook formats, featuring new vocalist Zeta.

The first disc consists of the band's hits sung in English by renowned artists from Europe, such as Jonne Järvelä of Korpiklaani, Damnagoras of Elvenking, Eric Martin from Mr. Big, Ralf Scheepers from Primal Fear, and Paul Shortino from King Kobra.

The second disc contains several of their hits with Jose Andrëa and Zeta and some remastered tracks performed by artists such as Leo Jimenez, Víctor García, and Cristian Bertonceli.

The album features a symphony orchestra with soprano and falsetto choruses and choirs, incorporating Power Metal and Folk.

Their album Alicia en el Metalverso (2024) with new singer Rafa Blas (former winner of the Spanish version of The Voice)[6] earned them a Latin Grammy nomination.