Dragon is the girlfriend of Donkey. In the first movie 'Shrek', Dragon had eaten the evil king Lord Farquaad. But he has returned and now wishes again to marry the fair Princess Fiona to become king of the underworld. Fiona is kidnapped and tied on a raft heading for a waterfall while Shrek and Donkey went in pursuit of the kidnapper and ended up at a cemetery where they're chased by a stone dragon called to life by Lord Farquaad. Dragon manage to save Donkey and Shrek and in a wild chase destroy the stone dragon by flying through a cliff. Just a little while later they see Princess Fiona and manage to save her just in time before she would fall to her death. Afterwards Dragon chases Lord Farquaad away and goes on a trip with her boyfriend Donkey.
In the first movie Dragon meets Donkey for the first time, she's guarding the tower where Fiona is being held. Shrek and Donkey try to free her and end up in a struggle with the Dragon. But Donkey, the charmer that he is, manage to sway the dragon and after a little trick both Shrek, Donkey and Fiona manage to escape while Dragon is being left behind. At the end of he movie we can see Dragon patch things up with Donkey and hooking up. They then go to Lord Farquaad to stop the marriage between him and Fiona from happening and end up eating Lord Farquaad. In the second movie we see Dragon once more at the end of the movie. Donkey had been complaining she was moody and that was why he needed to get away from her but it turned out she was pregnant and that was why she was so moody all along. Donkey is then greeted by his baby children who are a mix between a dragon and a baby.