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I watched a few minutes of this movie (probably American) sometime in the early to mid 90s.

This part was at around the beginning of the movie (or probably somewhere in the middle, but I am guessing more towards the beginning). Two children (brother and sister) are told stories about magic and fairies by their mother (or grandmother, can't quite remember).

Moreover, the adult tells them that only those who believe in magic can actually spot it. Then one day the children while playing outside see a rainbow and start to follow it and at the end they find a leprechaun and his pot of gold.

For some reason the children then bring the leprechaun back with them to their house, but they are surprised to discover that the adults can't see him, showing that the adults who told stories of magic and convinced them to believe in magic don't really believe in magic themselves.

This is all I remember from this movie. What is this film?

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Sounds like The Great Land of Small (1987). In it, a young brother and sister visit their grandparents and their grandpa tells them that they'll see leprechauns if only they believe in them. They do find one (Michael J. Anderson from Twin Peaks and Carnivale) at the end of the rainbow and bring him home, but their mother can't see him. They later go on an adventure with him in an enchanted kingdom. Here's the trailer:

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