Despite 32 points from Luka Doncic and 24 from LeBron James, the Lakers dropped their third straight game and at 43-28 are now tied with the Memphis Grizzlies in the battle for fourth place in the Western Conference.
Franz Wagner scored 32 points and Paolo Banchero added 30 for the Magic, who out-scored the Lakers 34-18 in the third quarter to seize control of the contest.
The defeat follows the Lakers' blowout loss to the Chicago Bulls in James's first game back after missing seven games with a groin injury.
The Lakers had hoped James, Doncic and a newly healthy Rui Hachimura would fuel a strong stretch run in the West, but Lakers coach JJ Redick said his players are lacking the defensive intensity they displayed in an eight-game winning streak that had briefly pushed them to second in the standings.
"We can get back there," Redick said, adding that the injury-enforced lineup changes may have taken a toll. "We look tired. I don't know what contributes to that... we weren't able to sustain our level of intensity that we started the game out with."
The Lakers did cut a 17-point fourth-quarter deficit to seven with 5:39 remaining, but the Magic - eighth in the Eastern Conference - swiftly pulled away again.
Redick said the Lakers can also use some practice time to get recently returned player reintegrated.
"We've got to get back into the flow and the rhythm," he said. "It's not just (the returning players) getting back into the flow, but it's the group and how the group functions."
The Denver Nuggets were still clinging to third in the West after falling to the Bulls, who were fueled by 37 points from Coby White - his third straight game of 35 or more.
Josh Giddey added 26 points, eight rebounds and nine assists and six Chicago players scored in double figures as the Bulls, ninth in the East, rallied from an early 13-point deficit.
The Nuggets led by four early in the fourth quarter, but with NBA Most Valuable Player Nikola Jokic again sidelined with an ankle injury and Aaron Gordon absent they couldn't stop the Bulls' late surge.
The defending champion Boston Celtics cruised to a sixth straight victory, but their 113-95 win over the Kings in Sacramento was marred by an injury to All-Star Jayson Tatum.
Tatum scored 25 points with seven rebounds and eight assists before departing in the third quarter after rolling his ankle when he came down from a shot on the foot of Kings centre Domantas Sabonis - who was assessed a flagrant foul.
Tatum stayed in the game long enough to take his free throws before he was helped to the locker room.
The Indiana Pacers, fueled by 24 points and 11 assists from Tyrese Haliburton, grabbed a fifth straight victory, 119-103 over the Minnesota Timberwolves.
Obi Toppin made six three-pointers on the way to 20 points for the Pacers, whose lead over Milwaukee for fourth place in the East stood at two games after the Bucks fell 108-106 to the Suns in Phoenix.
Naz Reid scored 20 points off the bench to lead the Timberwolves, who are eighth in the West but just one game out of sixth place and the chance to avoid the play-in tournament.
Devin Booker was the hero for the Suns, drilling a step-back basket with 2.4 seconds remaining to seal the win in a game that featured 15 lead changes, six of them in the fourth quarter.
Kevin Durant led all scorers with 38 points for Phoenix, and Giannis Antetokounmpo led the Bucks with 31.
The Dallas Mavericks welcomed Anthony Davis back to action with a victory, beating the Nets 120-101 in Brooklyn.
Davis returned after missing six weeks with an adductor injury - suffered in his first game for the Mavs after the stunning trade that brought him from the Lakers in exchange for Doncic.
Davis scored 12 points on six-of-nine shooting in 26 minutes on the floor. Naji Marshall scored 22 points off the bench as the Mavs posted a second successive victory.