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The spell Dispel Magic reads:

Choose one creature, object, or magical effect within range. Any spell of 3rd level or lower on the target ends. For each spell of 4th level or higher on the target, make an ability check using your spellcasting ability. The DC equals 10 + the spell's level. On a successful check, the spell ends.

The Cleric's Channel Divinity feature reads:

At 2nd level, you gain the ability to channel divine energy directly from your deity, using that energy to fuel magical effects.

Am I correct in my understanding that Dispel Magic would have no effect when targeting a magical effect caused by Channel Divinity because Channel Divinity is not a spell?

As linked by Peter Duniho this answer seems to answer my question well.

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Channel Divinity is not a spell

You are right that Channel Divinity is not a spell and therefore cannot be dispelled.

Specifically, dispel magic reads (emphasis added):

Choose one creature, object, or magical effect within range. Any spell of 3rd level or lower on the target ends. For each spell of 4th level or higher on the target, make an ability check using your spellcasting ability. The DC equals 10 + the spell's level. On a successful check, the spell ends.

The expression "creature, object, or magical effect" explains how to target specific magical effects (target restriction). The word spells is a restriction of scope: Creatures and magic items with innate powers, even though magical, cannot be affected. The same goes for other magical occurrences that are not defined as spells, including Channel Divinity. It also creates a scope concerning the power level of effects that can be dispelled.

This is supported by the following extract from the sage advice compendium:

Can you use dispel magic to dispel a magical effect like a vampire’s Charm ability or a druid’s Wild Shape? Dispel magic has a particular purpose: to break other spells. It has no effect on a vampire’s Charm ability or any other magical effect that isn’t a spell.

Just like Wild Shape, Channel Divinity is a class feature which creates a magic effect, but is not a spell.

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    \$\begingroup\$ You could improve this answer by quoting the spell description of dispel magic. \$\endgroup\$ – Thomas Markov Jul 14 at 7:31
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    \$\begingroup\$ @ThomasMarkov Didn't deem it necessary, because it is in the question \$\endgroup\$ – Anagkai Jul 14 at 7:33
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    \$\begingroup\$ Your good explanation seemed to me to be somewhat disconnected from the question - the spell description is what connects your answer to the question. Just my thoughts, probably isn’t a big deal though. +1. \$\endgroup\$ – Thomas Markov Jul 14 at 7:35
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    \$\begingroup\$ Could reference the Sage Advice on Dispel Magic though. p15 to be specific. \$\endgroup\$ – Slagmoth Jul 14 at 11:57
  • \$\begingroup\$ @Slagmoth Added a citation. \$\endgroup\$ – Anagkai Jul 14 at 12:16

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