This is the 10677th most frequent Russian word.
волшебной
Magical.
The word 'волшебной' is used here as an adjective describing the wand, attributing it magical qualities.
У меня есть волшебной палочки.
I have a magic wand.
The word 'волшебной' functions as an adjective describing the fairy tale, metaphorically indicating its enchanting atmosphere.
Этот вечер был волшебной сказкой.
This evening was a magical fairy tale.
In this sentence, 'волшебной' is an adjective modifying 'красоту', emphasizing the breathtaking and almost mythical nature of the beauty of the mountains.