Magical has given champion trainer Aidan O'Brien his first win in the Champion Stakes at Ascot.
The four-year-old won the Fillies And Mares Stakes on the corresponding card 12 months ago and has since racked up Group One victories in the Tattersalls Gold Cup and the Irish Champion Stakes.
During the same period she has finished second to old foe Enable in the Breeders' Cup Turf, the Coral-Eclipse and the Yorkshire Oaks.
The even-money favourite travelled powerfully on the heels of the pace-setting Regal Reality for much of the 10-furlongs (2000m) before being nudged to the front in the straight by the trainer's son Donnacha O'Brien.
Magical had three-quarters of a length to spare over Addeybb whose wet track credentials were superior while Japanese mare Deirdre ran third.
"She is just incredible, but she is classy as well," Aidan O'Brien said.
"A mile-and-a-half probably stretches her, although she has won over that a mile and a quarter is really her.
"She's by Galileo which makes her special. They don't know when to stop. They never hold a grudge and mentally they are unbelievable. She is the most unbelievable mare I've seen.
"What can you say about her? She is the ultimate racehorse, that is what she is. She is incredible. It looks like she is still progressing, which is amazing.
O'Brien said the Coolmore ownership team would make the decision whether to go to the Breeders' Cup Filly & Mare Turf.
Seiko Hashida Yoshimura, racing manager for Deirdre's owner, Toji Morita, said the Hong Kong International meeting in December was among the mare's options.
"We have enjoyed our visit. All our team love Britain and British racing," he said.
"It has been unforgettable - a life-changing experience for everyone in the team.
"We may extend our journey to next year. Hopefully we can see her here again next year. We never ran against Enable, so we might see her. That would be another dream.
"This horse has opened the gate for everyone from Japan."