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Despite the remarkable developments of recent large models in Embodied Artificial Intelligence (E-AI), their integration into robotics is hampered by their excessive parameter sizes and computational demands. Towards the Vision-and-Language Navigation (VLN) task, a core task in E-AI, this paper reveals the great potential of using knowledge distillation for obtaining lightweight student models by proposing a Meta-Ability Guided Interactive Chain-of-distillation (MAGIC) method. Specifically, a Meta-Ability Knowledge Distillation (MAKD) framework is proposed for decoupling and refining the necessary meta-abilities of VLN agents. A Meta-Knowledge Randomization Weighting (MKRW) and a Meta-Knowledge Transferable Determination (MKTD) module are incorporated to dynamically adjust aggregation weights at the meta-ability and sample levels, respectively. Move beyond the traditional one-step unidirectional distillation, an Interactive Chain-of-Distillation (ICoD) learning strategy is proposed to allow students to give feedback to teachers, forming a new multi-step teacher-student co-evolution pipeline. Remarkably, on the R2R test unseen public leaderboard, our smallest model, MAGIC-S, with only 5% (11M) of the teacher's size, outperforms all previous methods under the same training data. Additionally, our largest model, MAGIC-L, surpasses the previous state-of-the-art by 5.84% in SPL and 3.18% in SR. Furthermore, a new dataset was collected and annotated from our living environments, where MAGIC-S demonstrated superior performance and real-time efficiency. Our code is publicly available on https://github.com/CrystalSixone/VLN-MAGIC.