Magarevo village is located at the foot of Baba Mountain, at altitude 1080 meters a.s.l., 8 km west of Bitola.
At the beginning in the village lived small number of inhabitants, until the end of the eighteenth century when a large number of Vlach families settled here mostly from Moskopole (today Albania).
The settlement of a large number of intellectuals, doctors, merchants and craftsmen has positively affected the development of this village, where primary, semi-gymnasium and female school were opened. The architectural gemstone of the village is the church dedicated to St. Demetrius, built in 1835. In the vicinity of this church in 1871 the church dedicated to St. George was built.
The upward development that this prosperous settlement had, was stopped during the First World War when the front-line of the Macedonian front passed through the village. A part of the population fled from their homes, part was interned in Bulgaria, from where many did not return, and many people died due to military actions and contagious diseases.
After the war, the emigration continued, and according to the last census in 2002 in the village there were 87 inhabitants living in the village.