The point guard practiced Monday, but likely won't play Tuesday.
Nelson has missed the last five games while he recovers from a groin injury. Second-year guard E'Twaun Moore has replaced Nelson in the starting lineup.
Magic coach Jacque Vaughn said it was "good to see (Nelson) go up and down a bit. See how his body responds."
Nelson has played in just one game this season -- the season opener. In 35 minutes against the Denver Nuggets, Nelson scored nine points and dished out seven assists. He also had four defensive rebounds.
Moore, 23, has played well in Nelson's absence. The former second-round pick by the Boston Celtics in 2011 is averaging 13.5 points, 3.5 assists and four rebounds per game.
One of Moore's best games in the NBA came on Nov. 9 against Brooklyn. Moore scored 18 points and had five assists in a 107-68 blowout loss.
Orlando has lost four games in a row. The Magic host the New York Knicks on Tuesday at 7 p.m.