Salman Rushdie's Midnight's Children (1981), winner of the Booker Prize and the Booker of Bookers, stands as one of the most celebrated and critically examined works of postcolonial literature in the English language. This paper examines how Rushdie employs magic realism not merely as an aesthetic device but as a deliberate postcolonial strategy — a mode of narration that challenges the epistemological authority of colonial historiography and asserts the validity of alternative, subaltern ways of knowing. Through the figure of Saleem Sinai, the telepathically gifted narrator whose personal history is inextricably bound to the history of independent India, Rushdie constructs a counter-narrative to the official discourses of nationalism, modernity, and progress. Drawing on the theoretical frameworks of Homi Bhabha, Gayatri Spivak, Frantz Fanon, and Wendy Faris's scholarship on magic realism, this article argues that the novel's fantastical elements — the Midnight's Children's Conference, Saleem's permeable sinuses, and the Sundarbans episode — function as sites of epistemic resistance, enabling the recovery of marginalized histories and the destabilization of monolithic national identity. The paper further contends that Rushdie's self-reflexive narrative style enacts a politics of hybridity that exposes the fictionality of all grand narratives, colonial and nationalist alike, proposing instead a pluralistic, provisional, and embodied understanding of history and selfhood.