Magical quality of little daughter with us in the beginning (8)
I believe the answer is:
stardust
'magical quality' is the definition.
'little daughter with us in the beginning' is the wordplay.
'little' indicates taking the first letters.
'with' means one lot of letters go next to another.
'in the' indicates putting letters inside.
'beginning' becomes 'start' (synonyms).
The initial letter of 'daughter' is 'd'.
'd'+'us'='dus'
'dus' placed inside 'start' is 'STARDUST'.
'of' acts as a link.
(Other definitions for stardust that I've seen before include "that could blind one to reality" , "Singer < and song" , "Imaginary particles blinding someone to reality" , "In Woodstock we are this" .)