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.[4]
On June 26, 2011, the company celebrated its 19th anniversary on ASAP Rocks. It also launched the new website and the new music video with the current artists of the company.[5]
In 2021, Star Magic announced during its Black Pen Day Signing that they will be launching Star Magic Records, a sub label under ABS-CBN Music; Star Magic Studio, which will create content for Star Magic artists; and Star Magic Digital Artist Agency, as well as relaunching ABS-CBN Corporation's theatre arm Teatro Kapamilya.[8]