The most common and most likely answer to this crossword clue is the 6 letter word NARNIA
I've seen this crossword clue in The Guardian
N
A
R
N
I
A
More clues leading to the result NARNIA
- Top stuntman finally managed to climb multistoried location?
- New song about knight in realm of fantasy
- Magical realm created by displaced rani in North America
- Returning, a home managed to be a magical place
- Setting for Chronicles some Captain rang about
- Land of make-believe found in mountain range on the way back
- Fantasy land? Sounds more like Indian bread!
- Rushed around province, a magical place
- Iranian heading off mysteriously for a magical land
- Elevating India in ranking, essentially fabulous country
Buddy explains!

The straight part
We know that "realm of fantasy" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case realm of fantasy = narnia.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.