Luka Doncic scored 32 points and LeBron James added 24 and eight assists for the Lakers, who led 60-58 at half-time.
However, Orlando outscored the visitors 34-18 in the third quarter and went on to wrap up a 118-106 victory.
Franz Wagner contributed 32 points and nine assists for the Magic, while Paolo Banchero added 30 points and seven rebounds.
“We look tired,” said Lakers coach JJ Redick. “I don’t know what contributes to that. We weren’t able to sustain the level of intensity that we started the game with.”
The Lakers, who have lost seven of their past 10 games are fourth in the Western Conference with 11 games of the regular season remaining. The top eight qualify for the play-offs and they have eight more wins than the ninth-placed Sacramento Kings.
The Magic occupy eighth spot in the Eastern Conference and have 10 games left.
Elsewhere on Monday, in a match featuring two sides unlikely to make the play-offs, the Dallas Mavericks welcomed Anthony Davis back from injury in a 120-101 victory over the Brooklyn Nets.
Davis scored 12 points in 26 minutes as he returned from six weeks out with an abductor injury – suffered in his first game for Dallas after his trade from the Lakers in exchange for Doncic.
