The term 'magical powder' can refer to two different crossword solutions: stardust (8 letters) and fairydust (9 letters). Stardust is a type of dust composed of tiny particles of matter from outer space, such as comets, asteroids, and meteoroids. It is believed to have magical properties and is often used in fantasy stories. Fairy dust is a type of magical powder that is used by fairies in folklore and fantasy stories. It is believed to have the power to grant wishes and to make people fly.