An all-ages Captain Marvel comic, Billy Batson and the Magic of Shazam!, debuted in July 2008 under DC's Johnny DC youth-oriented imprint, and was published monthly through December 2010. Following the lead and continuity of Smith's Monster Society of Evil miniseries, it was initially written and drawn by Mike Kunkel, creator of Herobear. Art Baltazar and Franco Aureliani, of Tiny Titans, took over as writers with issue #5, with Byron Vaughns as main artist until issue #13, when Mike Norton assumed his place for the remainder of the series. Kunkel's version returns to the modern concept of having Captain Marvel retain Billy's personality, and also introduces new versions of Black Adam (whose alter ego, Theo Adam, is a child like Billy Batson in this version), King Kull, the Arson Fiend, and Freddy Freeman/Captain Marvel Jr.
- In Magic of Shazam!, Billy Batson is a young boy who must juggle his superheroic life as Captain Marvel with looking after his rambunctious little sister Mary Marvel. Unlike Billy, who transforms into an adult when he speaks the magic word "Shazam", Mary possesses only a fraction of his power, although she is faster, and remains a child in her superhero form. Tawky Tawny, a shapeshifting servant of the wizard Shazam, assists them and comes to live with them at their insistence when his form is later fixed as a humanoid tiger. Other Marvel Family characters are similarly re-imagined, such as Black Adam who is presented as bratty exchange student Theo Adam, a classmate of Billy. In their clashes, a boy, Freddy Freeman, is accidentally seriously injured and paralysed and blamed the Marvels for it. Black Adam exploited that hate to recruit him with his power as Black Adam Jr. until the boy realizes the villain's evil and reconciled with the Marvels, which led to Captain Marvel bestowing him a portion of his power to become Captain Marvel Jr.
- Mary appears as a main character in this follow-up series. As in Monster Society of Evil, Mary has only a fraction of her brother's powers and remains a child in super form; although faster, she is far less strong. As Mary is very hyper and reckless, Billy is very protective of her, although he is also often annoyed by her antics and snarkiness. During the final battle against Black Adam, she briefly gains an adult form, only to lose it shortly after and reverting to a child.
- Black Adam appeared in the first four issues of Billy Batson, published between late 2008 and early 2009. In this version, Black Adam's alter ego, Theo Adam, is a 14-year-old boy, although much of the rest of his backstory remains true to the original Fawcett version of the character. Within the context of the story, the wizard Shazam imprisoned the errant Theo Adam in an alternate dimension during the days of ancient Egypt, only for Adam to become free after a battle between Captain Marvel and Mister Mind opens a hole which allows Adam to escape. However, Theo Adam has forgotten the magic word ("Shazam") which will transform him into Black Adam, but after learning that young Billy Batson has taken over the role of Shazam's champion as Captain Marvel, Theo calls upon the help of the Seven Deadly Enemies of Man and captures Billy, attempting to force Billy into telling him the word. When Billy's sister Mary finds her brother captured, she transforms into Mary Marvel to save him, only to have Adam overhear her, repeat the word, and become Black Adam again.
- Freddy Freeman first appeared in issue 13 of this book; he was shown crippled and in a wheelchair, the result of being inadvertently injured in a previous battle involving the Marvels. At a museum, he accidentally witnesses the Batsons transform and tells Theo Adam the magic word they used to transform back into Black Adam. Theo Adam then talks Freddy into becoming a Marvel as well, so he can do everything including walk again. He then transforms into Black Adam Junior and attacks the Marvels. However, Freddy soon realizes Black Adams' evil, rebels and makes partial peace with the Marvels, although he keeps aloof from them. However, Captain Marvel was later traumatically drained and aged by the supervillain, The Vampire Burglar, Mary Marvel and Tawky Tawny came to Freddy in desperation to help them get the Captain to the wizard Shazam's chamber. With much persuading, Freddy agrees but they encounter Black Adam there, having claimed Shazam's power for himself. Although Shazam soon reappears, the battle against the renegade is complicated by the fact that the only way to help Billy is give him his Shazam power as Black Adam Jr., which would permanently strip himself of it. With much consideration, Freddy agrees and restores Captain Marvel. When Marvels inquire how they can make it up to Freddy for his sacrifice, Shazam suggests Captain Marvel that his name has great power of its own. Inspired, Captain Marvel gets Freddy to speak his name and, upon doing so, the boy is bestowed the power and form of Captain Marvel Jr.. This version is apparently able to say his own name without an unwanted transformation and his costume emulates the Captain's by being looser than the tradition costume, complete with a lapel.
- Dr. Sivana also appears in Billy Batson and the Magic of Shazam! Mike Kunkle's design differs greatly from other versions: he's actually taller than Billy and Mary Batson.
- In this version of the Master Mind it is designed in such a way that it doesn't look like an insect larva, but rather like an earthworm with a mouth and sharp teeth.