While filming in 1933, Schneider met her future husband, the Austrian actor Wolf Albach-Retty. The couple married in 1937 and had two children: Rosemarie Magdalena, called Romy, and Wolf-Dieter, later a surgeon, born in 1941. During World War II, Schneider lived in the Bavarian Alps near Hitler's retreat in the Obersalzberg above Berchtesgaden. Schneider was a guest of Hitler's, who declared that she was his favorite actress. Later she and Albach-Retty separated and the marriage ended in divorce in 1945.
Magda Schneider arranged further appearances with her daughter in several movies such as Mädchenjahre einer Königin (Victoria in Dover, 1954), the films of the Sissi trilogy based on the life of Empress Elisabeth of Austria, with Romy Schneider starring in the title role and Magda Schneider playing the role of her mother Princess Ludovika of Bavaria, and in Die Halbzarte (Eva, 1958). Magda Schneider's role in the 1933 film Liebelei (1933) was also played by her daughter, Romy Schneider, in the remake Christine (1958).