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1) Magic tables are nothing but inserted and deleted which are temporary object created by server internally to hold the recently inserted values in the case of insert and to hold recently deleted values in the case of delete, to hold before updating values or after updating values in the case of update.
Let us suppose if we write a trigger on the table on insert or delete or update. So on insertion of record into that table, inserted table will create automatically by database, on deletion of record from that table; deleted table will create automatically by database,
2) This two tables inserted and deleted are called magic tables.
3) Magic tables are used to put all the deleted and updated rows. We can retrieve the column values from the deleted rows using the keyword “deleted”
4) These are not physical tables, only internal tables.
5) This Magic table is used In SQL Server 6.5, 7.0 & 2000 versions with Triggers only.
6) But, In SQL Server 2005, 2008 & 2008 R2 Versions can use these Magic tables with Triggers and Non-Triggers also.
7) Using with Triggers:
If you have implemented any trigger for any Tables then,
A.Whenever you Insert a record on that table, That record will be there on INSERTED Magic table.
B. Whenever you update the record on that table, that existing record will be there on DELETED Magic table and modified new data with be there in INSERTED Magic table.
C. Whenever you delete the record on that table, that record will be there on DELETED Magic table only.
These magic tables are used inside the Triggers for tracking the data transaction.
8.) Using Non-Triggers:
You can also use the Magic tables with Non-Trigger activities using OUTPUT Clause in SQL Server 2005, 2008 & 2008 R2 versions.
Hope you enjoyed reading.
Cheers
Vishalnayan 
bhai tere dhabe main kya kya milta hai
Posted by manish | 2011/04/16, 6:13 PMThis article gave me an insight into Magic Table in SQL server from scratch.Its Simple to Understand and complete.I Enjoyed learning and I Thank You very much. I had found also another nice post over internet which nicely explain about magic table in sql server, The post link is…..
http://mindstick.com/Blog/211/Magic%20Table%20in%20SQL%20Server
Thanks to all for save my time.
Posted by Pankaj Singh | 2011/11/14, 7:27 PMgood one. It’s really help me to understand Magic Table concept.
Thanks,
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Posted by Monte | 2013/05/13, 6:52 PMIs magic table created by default when we perform normal insertion &Deletion?
Posted by Ramesh | 2014/09/08, 11:03 PM