"You Can Do Magic" was written and produced by British songwriter Russ Ballard (ex-Argent, who also wrote hits for Rainbow, Ace Frehley and Frida). America (which was already only the duo Gerry Beckley and Dewey Bunnell after the departure of Dan Peek) had been without a blockbuster track since 1976. Russ composed the track especially for them, played almost all the instruments (except the drums) and created that "do do" of the chorus thinking about the perfect vocal harmonies of the two.
It became the band's biggest hit of the 80s, #8 on the Billboard Hot 100 and marked their comeback.