In this article, we show that magnitude homology and path homology are closely related, and we give some applications. We define differentials MH 𝓁 𝑘 (𝐺) ⟶ MH 𝓁−1 𝑘−1 (𝐺) between magnitude homologies of a digraph 𝐺, which make them chain complexes. Then we show that its homology 𝓁 𝑘 (𝐺) is non-trivial and homotopy invariant in the context of 'homotopy theory of digraphs' developed by Grigor'yan-Muranov-S.-T. Yau et al. (G-M-Ys in the following). It is remarkable that the diagonal part of our homology 𝑘 𝑘 (𝐺) is isomorphic to the reduced path homology H𝑘 (𝐺) also introduced by G-M-Ys. Further, we construct a spectral sequence whose first page is isomorphic to magnitude homology MH 𝓁 𝑘 (𝐺), and the second page is isomorphic to our homology 𝓁 𝑘 (𝐺). As an application, we show that the diagonality of magnitude homology implies triviality of reduced path homology. We also show that H𝑘 (g) = 0 for 𝑘 ⩾ 2 and H1 (g) ≠ 0 if any edges of an undirected graph g is contained in a cycle of length ⩾ 5.