Speaking to the East Anglian Daily Times, the former Northern Ireland international said: "It is a fantastic feeling and I'm really looking forward to it. I will feel so proud to lead the team out in the derby for my first time as skipper.
"It is always an important game anyway but given our respective league positions it is even more crucial. We know we can make and break people's Christmases, that is how much it means.
"Derby games are about the supporters. The players have 90 minutes of playing, they have the hype and the build-up with the media attention focusing so hugely on East Anglia and this game, but for the fans it goes beyond that right up until the next derby match."
Three of Royle's newest signings are set to take stage at Portman Road in their first East Anglian Derby, namely Chris Bart-Williams, Kelvin Davis and Shefki Kuqi, and Magilton admits if they do not know what the rivalry is about, they will on Sunday.
"If the new lads don't know what it means then they will find out big time on Sunday. They are realising the importance as the week builds up and that is good as they have the nerves and realisation." Jim continued.
"But come Sunday, believe me, all the lads will be fired up in that dressing room just as they are every week. It is about playing our neighbours but it is also about us getting back on a winning track after the draw at Millwall."