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Hedo Turkoglu joined the Orlando Magic in 2004. He scored a career-high 39 points twice: in an April 2007 game against the Toronto Raptors, and in a March 2008 game against the Washington Wizards.

On April 28, 2008, Hedo Turkoglu was named the NBA's Most Improved Player Award for the 2007–08 NBA season. Türko?lu helped the Orlando Magic win 52 games, and averaged career-highs in points per game (19.5), rebounds per game (5.7) and assists per game (5.0) and started all 82 regular season games.

In the 2008–09 NBA season, the Magic reached the NBA Finals for the first time since 1995. However, they lost in 5 games. Türko?lu decided to opt out of his contract.

On July 9, 2009, Hedo Turkoglu was signed and traded to the Toronto Raptors as a part of a four-team deal among the Toronto Raptors, Orlando Magic, Dallas Mavericks and Memphis Grizzlies which also included Shawn Marion.