It is not uncommon to engage in magical thinking at times, but when it becomes a habit, it can consume significant time and energy without our awareness, potentially causing more harm than we realize.   What is Magical Thinking? Magical thinking might sound odd or worrisome, prompting concern about underlying issues. Could it mean psychosis? Unlikely. Magical thinking is typically a feature of anxiety and often appears in OCD (Obsessive Compulsive Disorder), which is its