The magical tree in Celtic folklore believed to grant wishes is known as the Tree of Life. This sacred tree symbolizes interconnection between all living things, representing knowledge, healing, and the cycle of life and death. In various tales, the tree serves as a source of enchantment, allowing characters to achieve their desires when approached with pure intentions. By embedding such trees in their narratives, Celtic folklore encapsulates profound themes of growth, transformation, and the ethereal relationship between nature and the human experience.