Magic methods, also known as "dunder methods," are special methods in Python that allow for the customization of class behaviors, particularly within the object-oriented programming paradigm. These methods, such as `__init__`, `__str__`, and `__len__`, enable the definition of how objects are initialized, represented, and measured, respectively. Additionally, magic methods facilitate operator overloading, allowing developers to redefine the behavior of arithmetic, comparison, logical, and membership operators for custom objects. For instance, methods like `__add__`, `__sub__`, and `__lt__` enable custom implementations for addition, subtraction, and less-than comparisons. Context managers in Python utilize the `__enter__` and `__exit__` methods to manage resource setup and teardown automatically within a `with` statement, ensuring efficient resource handling. By leveraging these methods, Python developers can create more intuitive, flexible, and powerful code, enhancing both readability and functionality.