Prior to Star Magic, ABS-CBN had formed a talent management led by Freddie M. Garcia and director Lino Brocka after its reopening in 1986 following the EDSA People Power Revolution.

In April 1992, Garcia, then ABS-CBN executive vice president and general manager, and Johnny Manahan, then program director, formed the idea of creating a stable of new stars exclusively for the network.

[3] Star Magic was created on May 12, 1992 to assist young talent in the Philippines, where its talents undergo training in acting, personality development and physical enhancement before contributing to the Philippine television and film industry by joining on the television shows of ABS-CBN and Star Cinema films, commercial projects, and corporate events.

[8] In August 2022, certain Star Magic artists toured the United States as part of their 30th anniversary celebration, staging shows in Kings Theater, Brooklyn, The Warfield, San Francisco, and in the Saban Theatre, Beverly Hills.

Prior to the US tour, the artists (except singer-songwriter SAB) staged a kick-off event at the Newport Performing Arts Theater in Resorts World Manila.