Dr. Strangemonkey said:
Magic in Exalted is lots of fun on every level, though it does function differently from DnD magic.
For those uninitiated in the mysteries of Exalted, there are basically three big levels of magic in the game. The first is mortal magic, which is pretty darn weak. It's so weak they pushed it off to a supplement (Player's Guide).
The second is Charms, which is sort of the bread and butter of what the Exalted do. Charms generally work in conjunction with skills - for example, solars have archery charms that let them shoot at all opponents in sight, medicine charms that let them heal with a touch, stealth charms that let them become invisible, and bureaucrary charms that let them speed up or slow down the workings of a big organization by a factor of 10. Each type of supernatural creature have a different set of charms - Solars have one, Dragon-blooded have another, as do Lunars, Abyssals, Sidereals, and Spirits. Some of these have charms that aren't based on skills - Lunars' charms are based on attributes (Strength, Charisma, Wits, etc.), while Spirits' are based on Virtues (Compassion, Valor, Conviction, Temperance). Charms can be compared to D&D's feats, with the way they're organized into trees and usually are focused on improving the character's innate abilities.
The third, and most powerful, are Spells. Spells are divided into two major groups: Sorcery and Necromancy. Sorcery is more generalist, while Necromancy is highly focused on death and destruction. Each of these is then divided into three circles - Sorcery has Terrestrial, Celestial, and Solar circle, while Necromancy has Shadowlands, Labyrinth and Void circle. Casting spells requires the knowledge of the appropriate charm, and in addition spells are learned as charms as well (at least at the start of the game - in-game, you also need to worry about finding a source from which to learn the spell). However, they differ from charms in being slower to use (charms are usually used pretty much instantly, while spells take at least 2 rounds), usually being more costly in terms of Essence (magic-points) and Willpower, and having more spectacular and long-lasting effects. High-level spells can do some pretty frelling amazing things - there's a Celestial circle spell that razes the walls of a city, for example.