Genre Trouble

Contemporary Fantasy, as I understand it, is where magic and magical beings infiltrate into the reality. In other words, where you have a modern story where various paranormal, supernatural, or occult elements are real.

Urban fantasy is the same thing only it takes place specifically in a city, thus urban.

I could be wrong though.

I always thought that contempory fantasy was stuff like Stardust or A Knights Tale. Set in traditonal fantasy times but with modern elements, (like speech and whatnot.) Whereas Urban fantasy was set in modern times and containing elements of the fantastic. But, like shadow ferret, I could be wrong. (Although I'm almost definite urban fantasy is not confined to cities...)

This thread addresses some of the differences.