Children's Literature is often identified with forms of fantasy, wish – fulfillment, the dreams and ambitions of the weakest and most dependent seem to be best fulfilled in books that explore possibilities rather than describe actualities. But after the Second World War, the realistic has continued to be the dominant mode in fiction for children. Children's literature started to reflect the social reality of children in the post-war period. Edith Nesbit is one of the modern writers who used magic in writing for children. This paper tackles how Nesbit manages to keep a beautiful balance between both realistic and fantasy worlds in her fiction