Snoopy goes to the library, and finds a book on magic. He decides to put on a magic show for the neighborhood children, calling himself "The Great Houndini," and using Sally Brown, Marcie and Woodstock as his assistants. Most of Snoopy's tricks have slight flaws to them, but his disappearing trick becomes successful as it causes Charlie Brown to become completely invisible. However, before he can be changed back, a rain storm causes everyone to scatter.
Charlie Brown returns home, where he decides to leave, declaring himself 'doomed to roam the Earth as a lost soul.' Sally then wastes no time in moving her things into his room. However, being responsible, Charlie Brown decides to feed Snoopy one more time. Confronted by his invisible owner, Snoopy is coaxed to try and make Charlie Brown visible again. However, treatments from water, coating in clay, and wearing a sheet prove useless.
Shortly thereafter, Charlie Brown roams around the neighborhood, and finds Lucy in a clearing holding a football. Being invisible, he manages to sneak up on her and kick the football. Having the upperhand against Lucy's taunts, he then teases her with the ball, before forcing her to hold it in place, causing him to kick it. His triumphant laughter irritates Lucy.
Furious, Lucy goes to Snoopy and demands he make Charlie Brown visible again, promising to slug Snoopy if he does not. After studying the book, Snoopy experiments on Woodstock, causing parts of him to grow and shrink, before finally perfecting the cure to invisibility. Snoopy then hops off his doghouse, and goes searching for Charlie Brown, sending his de-invisibility powers hither and tither, hoping they will cure him.
Eventually Snoopy comes within range of Charlie Brown, and brings him back to the world of visibility. However, Charlie Brown is oblivious to this, and his attempts this time to kick the football are foiled by Lucy.
Even though he falls flat on his back, Charlie Brown still revels in the fact that he had previously kicked the football. Lucy scoffs at this, saying no one will believe him. When Charlie Brown suggests that Snoopy will believe him, Lucy throws an insult to Snoopy as well. Angrily, Snoopy causes Lucy to levitate into the air. Charlie Brown and Snoopy leave Lucy hanging it midair. As the credits roll, Lucy remains up in the air until her brother Linus comes by, and uses his blanket to get her down. Lucy is left angered and humiliated about what happened to her.
- Michael Mandy – Charlie Brown
- Sydney Penny – Lucy van Pelt
- Cindi Reilly – Sally Brown
- Rocky Reilly – Linus van Pelt
- Shannon Cohn – Marcie
- Brent Hauer – Peppermint Patty
- Christopher Donohoe – Franklin
- Bill Melendez – Snoopy and Woodstock
Patty appears but is silent.
- This is the last Peanuts TV special to begin with the "A Lee Mendelson-Bill Melendez Production" credit until Charlie Brown's Christmas Tales. Starting with Someday You'll Find Her, Charlie Brown, the credit would appear at the end again.
- This is the only time in Peanuts, for both the TV specials, and strip, where the interior of Snoopy's doghouse is shown. It includes a room with exercise equipment, sports equipment, lockers, awards and trophies; and a lab with a Bunsen burner, flasks and distillation equipment.
- Counting both the comics strips and TV specials, the special features the only instance in which Charlie Brown kicks the football that Lucy is holding (It was not regarded as canon by Schultz, however).
- This special was nominated for the Emmy Award for Outstanding Animated Program. The award that year went to Life is a Circus, Charlie Brown.
- This special features a heavy use of Rocky and Bullwinkle sound effects.
- In the audience, Charlie Brown is sitting next to Linus. In a later shot of the audience, Charlie Brown is sitting next to Lucy.
- Linus somehow gets his blanket back after it was cut up into pieces in the magic show.
- It's Magic, Charlie Brown on the Internet Movie Database.
- It's Magic, Charlie Brown on the Big Cartoon Database.
- It's Magic, Charlie Brown on AllMovie.