Magical Lagoon is out of Night Lagoon (Lagunas), winner of the Gr.3 Preis der Winterkönigin, champion 2-year-old filly in Germany in 2003 and later Broodmare of the Year there. Night Lagoon is a half-sister to the multiple stakes winner Night Tango (Acatenango), second in the Gr.1 Deutsches Derby. Magical Lagoon is a full or half-sister to eleven winners, among them Novellist (Monsun), a four-time Group 1 winner and sire whose wins include the Gr.1 King George VI & Queen Elizabeth S., Nuntius (Dalakhani), second in a German Group 3, Nerud (Bernardini), second in the Listed Derby-Trial, and the Listed-placed Ninfea (Selkirk), dam of Nemean Lion (Golden Horn), second in the Gr.2 Prix Chaudenay, and the Listed-placed Nayala (Maxios).

The second dam Nenuphar (Night Shift) won the Listed Dusseldorf-Preis and produced seven further winners, three of them black-type performers. Besides Night Lagoon and the dual Listed winner Night Tango they include Illumined (Sea The Moon), third in the Listed Foundation Stakes, and the 11-time winner Night Set (Second Set), fourth at Group 3 level in Germany.

The third dam Narola (Nebos) won three times. Her offspring include the dual Listed winner National Academy (Royal Academy), the Listed winner in Italy Nostro Amico (Martillo) and the Listed-placed Narnia (Entrepreneur).

The family goes back directly to Night Music (Pramos), winner of the Gr.3 Zukunfts-Rennen and a half-sister to Novelle (Northfields), winner of the then Gr.2 Preis der Diana (German Oaks).

Night Lagoon visited Circus Maximus in 2021.