A conceptually new approach giving rise to contrast enhancement by feedback fields in magnetic resonance imaging is proposed, and the detailed mechanism is described. Nonlinear spin dynamics under the feedback fields of the distant dipolar field and/or radiation damping are examined and shown to amplify contrast due to small variations in spin density and precession frequency. Feedback-based contrast enhancement depends on the instability of the initial magnetization configuration and is propagated by positive feedback, as shown through numerical simulations and experimental results on simple phantom samples. On the basis of a theoretical understanding of contrast enhancement, insight into pulse sequence design and optimal contrast attainable under the individual and joint feedback fields is provided.