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record sales, ended 1985 by releasing the single "One Vision". The song was used in the film Iron Eagle. Also, a limited-edition boxed set containing all Queen albums to date was released under the title of "The Complete Works". The package included previously unreleased material, most notably Queen's non-album single of Christmas 1984, titled Thank God it's Christmas.

In early 1986, Queen recorded the album A Kind of Magic, containing several reworkings of songs written for the Russell Mulcahy film Highlander. The album was very successful, producing a string of hits, including the title track, "A Kind of Magic". Also charting from the album were "Friends Will Be Friends", "Who Wants to Live Forever?", and the de facto theme from Highlander, "Princes of the Universe".

Later that year, Queen went on a sold-out tour in support of A Kind of Magic, once again they hired Spike Edney, leading to him being dubbed the unofficial fifth member. The Magic Tour's highlight was at Wembley Stadium in London and resulted in the live double album, Queen Live At Wembley Stadium, released on CD and as a live concert film. They could not book Wembley for a third night, but they did play at Knebworth Park. The show sold out within two hours and over 120,000 fans packed the park for what proved to be Queen's final live performance with Mercury. More than 1 million people saw Queen on the tour—400,000 in the United Kingdom alone, a record at the time.

After working on various solo projects during 1988 (including Mercury's collaboration with Montserrat Caballé, Barcelona) the band released The Miracle in 1989. The album continued the direction of A Kind of Magic, using a pop-rock sound mixed with a few heavy numbers. It spawned the European hits "I Want It All", "Breakthru", "The Invisible Man", "Scandal", and "The Miracle".

The Miracle also began a change in direction of Queen's songwriting philosophy. Since the band's beginning, nearly all songs had been written by and credited to a single member, with other members adding minimally. With The Miracle, however, the band's songwriting became more collaborative, and they vowed to credit the final product only to Queen as a group.