Contemporary fantasy is a subgenre of fantasy, also known as modern-day fantasy, or indigenous fantasy. These terms are used to describe stories set in the putative real world (often referred to as consensus reality) in contemporary times, in which, it is revealed, magic and magical creatures exist, either living in the interstices of our world or leaking over from alternate worlds. It thus has much in common with, and sometimes overlaps with, secret history.
Novels in which modern characters travel into alternate worlds, and all the magical action takes place there (except for the portal required to transport them), are thus not considered contemporary fantasy.
Contemporary fantasy is also to be distinguished from horror fiction, which also often has contemporary settings. When encountering magical events and creatures, the protagonist of a horror novel is horrified, while the protagonist of a fantasy novel (contemporary or otherwise) is filled with a sense of joy and wonder. Horrifying events may happen, but the fundamental distinction is vital.
When the story takes place in a city, the work is often called urban fantasy.
Charles de Lint - He uses a disguised Ottawa, Ontario as a setting)
Tim Powers - His novels in this subgenre are mostly set in California).
Little, Big by John Crowley - Set in an unnamed New York City and a rural area to the north.
War for the Oaks by Emma Bull - Set in Minneapolis, Minnesota
The Wood Wife by Terri Windling - Set in Tucson, Arizona
Hannah's Garden by Midori Snyder - Set in the rural Midwest
Tithe by Holly Black - Set in New Jersey
Minions of the Moon by Richard Bowes - Set in New York City
Dangerous Angels by Francesca Lia Block - Set in Los Angeles
Dark Cities Underground by Lisa Goldstein - Set in San Francisco
The Folk of the Air by Peter S. Beagle - Set in a disguised Berkeley, California
King Rat by China Mieville - Set in London
The Dresden Files by Jim Butcher - Set in Chicago Neil Gaiman's American Gods (taking place all over the US) and Neverwhere (set in an underground London)
Various works by Mercedes Lackey.
Contemporary fantasy can also be found on the mainstream fiction shelves in the work of Alice Hoffman (Practical Magic), Louise Erdrich (The Antelope Wife), Chitra Bannerjee Divakaruni (Mistress of Spices), and others.
Another area where contemporary fantasy plays a large role is in Japanese anime story telling.
Superhero fantasy typically is set in contemporary times as well.
Martin Horstkotte, The postmodern fantastic in contemporary British fiction. WVT, Trier 2004, ISBN 3-88476-679-1
Lance Olsen, Ellipse of uncertainty : an introduction to postmodern fantasy. Greenwood Press, Westport 1987, ISBN 0-313-25511-3
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"Contemporary fantasy".
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