Neopagan witchcraft, sometimes referred to as The Craft, is an umbrella term for some neo-pagan traditions that include the practice of magic. They may also incorporate aspects of nature worship, divination, and herbalism. These traditions began in the mid-20th century, and many were influenced by the witch-cult hypothesis, a now-rejected theory that persecuted witches in Europe had actually been followers of a surviving pagan religion. The largest and most influential of these movements was Wicca. Some other groups and movements describe themselves as "Traditional Witchcraft" to distinguish themselves from Wicca. The first is viewed as more ancient-based, while the latter is a new movement of eclectic ideas.

In contemporary Western culture, some adherents of these religions, as well as some followers of New Age belief systems, may self-identify as "witches", and use the term "witchcraft" for their self-help, healing, or divination rituals. Others avoid the term due to its negative connotations. Religious studies scholars class the various neopagan witchcraft traditions under the broad category of 'Wicca', although many within Traditional Witchcraft do not accept that title.

These Neopagans use definitions of witchcraft which are distinct from those used by many anthropologists and from some historic understandings of witchcraft, such as that of pagan Rome, which had laws against harmful magic.

Most societies that have believed in harmful witchcraft or black magic have also believed in helpful or white magic or cunning craft. In these societies, practitioners of helpful magic provided services such as breaking the effects of witchcraft, healing, divination, finding lost or stolen goods, and love magic. In Britain they were commonly known as cunning folk or wise people. Alan McFarlane writes, "There were a number of interchangeable terms for these practitioners, 'white', 'good', or 'unbinding' witches, blessers, wizards, sorcerers, however 'cunning-man' and 'wise-man' were the most frequent". Ronald Hutton prefers the term "service magicians". Often these people were involved in identifying alleged witches.

In the 1920s, the witch-cult hypothesis gained increasing attention in occult circles when it was popularized by Margaret Murray. The witch-cult hypothesis was the idea that those persecuted as witches were not workers of harmful magic, but followers of a pagan religion (the "Old Religion") that had survived the Christianization of Europe. This has been proven untrue by further historical research. Though the theory of accused witches being followers of an organized pagan religion was discredited in academia, it spurred renewed interest in witchcraft.

From the 1930s, occult neopagan groups began to emerge who re-defined the term 'witchcraft' and applied it to their religion. They were initiatory secret societies inspired by Murray's witch cult theory, ceremonial magic, Aleister Crowley's Thelema, and historical paganism. The earliest group was the Bricket Wood coven of English occultist Gerald Gardner. Gardner said he had been initiated by a group of pagan witches, the New Forest coven, who he said were one of the few remnants of this pagan witch cult. His story is disputed by academics. Gardner's neopagan witchcraft religion, later known as Wicca, adopted many of the traditions ascribed to Murray's witch cult.

Gerald Gardner was not the only person who believed they were a member of a surviving pagan witch-cult. Others such as Sybil Leek, Charles Cardell, Raymond Howard, Rolla Nordic, Robert Cochrane and Paul Huson also said they had been initiated by surviving witch covens. They considered themselves to be following "hereditary" or "traditional" forms of pagan witchcraft.

English historian Ronald Hutton notes that neopagan witchcraft is "the only full-formed religion which England can be said to have given the world."