While in this form Mario can shoot Magic Balls from his magic scepter. These Magic Balls are not effected by gravity and can be aimed. The Magic Balls may also turn enemies into coins, Super Mushrooms or even rare 1-Up Mushrooms and reveal the contents in blocks.
Mario's Magic Ball abilities are based off of the Koopalings.
One of Magic Mario's designs is based off the Magikoopas.
If a magic ball is shot at a Koopaling then the Koopaling will absorb the magic ball and shoot a magic ball two times bigger.