This paper explores the interplay between entanglement and magic in quantum information theory, revealing a computational separation between two phases: entanglement-dominated (ED) and magic-dominated (MD). ED states have entanglement that significantly surpasses their magic, while MD states have magic that dominates their entanglement. This distinction leads to a computational phase separation, where ED states allow efficient quantum algorithms for entanglement tasks, while MD states are computationally intractable for such tasks. The ED phase is characterized by states with high entanglement that can be efficiently manipulated, while the MD phase consists of states with high magic that are difficult to manipulate. The paper provides a framework for understanding the behavior of quantum systems, with applications in quantum error correction, many-body physics, and quantum chaos. It also offers theoretical explanations for previous numerical observations, highlighting the broad implications of the ED-MD distinction across various subfields of physics. The paper presents a detailed analysis of entanglement theory through stabilizer protocols, showing how entanglement estimation, distillation, and dilution can be efficiently performed for ED states. It also demonstrates the hardness of these tasks for MD states, showing that they are computationally intractable. The paper concludes with a discussion of the implications of these findings for quantum information theory and physics.This paper explores the interplay between entanglement and magic in quantum information theory, revealing a computational separation between two phases: entanglement-dominated (ED) and magic-dominated (MD). ED states have entanglement that significantly surpasses their magic, while MD states have magic that dominates their entanglement. This distinction leads to a computational phase separation, where ED states allow efficient quantum algorithms for entanglement tasks, while MD states are computationally intractable for such tasks. The ED phase is characterized by states with high entanglement that can be efficiently manipulated, while the MD phase consists of states with high magic that are difficult to manipulate. The paper provides a framework for understanding the behavior of quantum systems, with applications in quantum error correction, many-body physics, and quantum chaos. It also offers theoretical explanations for previous numerical observations, highlighting the broad implications of the ED-MD distinction across various subfields of physics. The paper presents a detailed analysis of entanglement theory through stabilizer protocols, showing how entanglement estimation, distillation, and dilution can be efficiently performed for ED states. It also demonstrates the hardness of these tasks for MD states, showing that they are computationally intractable. The paper concludes with a discussion of the implications of these findings for quantum information theory and physics.