Fantastic Realism is a genre which remind us of Russia and its great writer Dostoevsky. This genre has been developed in Iran among Iranian writers who have been familiar with the books of world literature, especially Russian literature. Fantastic Realism employs and combines reality and imagination, and while it concerns the reality related to human beings, it pictures that kind of reality which is internal. That is why the reader has some difficulty in finding the true meaning in such novels. Among the Iranian writers, Khosro Hamzavi is more inclined to this genre and the novel The City which Died under the Cedar Trees is one of the best novels of this writer which is written on the basis and reflects Fantastic Realism. The City which Died under the Cedar Trees is discussed in this paper based on Fantastic Realism using a descriptive-analytic method.