"Magic Dance" is one of the featured songs performed by David Bowie in the 1986 Jim Henson movie, Labyrinth. It is also credited as "Dance Magic" in some instances.
This song is a dance number which momentarily takes the focus away from Sarah (Jennifer Connelly) to observe the goings on in the castle at the centre of the labyrinth. Jareth, played by Bowie, amuses himself by singing to Toby. The lyric 'What kind of magic spell to use?' possibly refers to the search for a spell that will cheer up a crying Toby. The answer they discover is 'Magic Dance'.
The song then begins with a simple dance beat, while a series of questions and answers between Jareth and the goblins presented in call-response form are layered over. Seeing that the goblins are still confused, Jareth provides further explanation in the form of an '80s dance/rock sequence. The goblins all sing along with Jareth, recounting multiple spells, and ultimately choosing a form of "magic dance".
The song lyrics makes reference to the 1947 movie The Bachelor and the Bobby-Soxer starring Cary Grant: "Hey, You remind me of the Man / Babe, What Man / Babe, The Man / Babe with the Power....".
Lord, I cried out, I cried out to You
You answered me in Your mercy
Your anger was fleeting
And now I will dance in Your favor all my life
Let my heart sing for You
And not remain silent
Let heart sing for You
Turn my weeping into a dance
So dance, dance my soul
There's no reason for you to weep
So dance, dance my soul,