Brought up on the streets of the city of the Moon, Dragon is a wise guy. He is always saying “forget about it”, although no one ever does and Dragon makes sure they don’t. Dragon obeys the Moon Bear King like a “Made Man” to a “Don.” Though Kutaro does not realize it, it was Dragon who snatched his soul from Earth and brought to the Moon, a process he performs each night for his master.
Near the end of the game, after Kutaro defeats General Rooster and fails to rescue Mr. Pink in time before General Monkey activates the Moon Clock on the darkest hour of dream time, the Moon Bear King summons Dragon to snatch the souls of every child on Earth with the purpose to make increase his powers to even greater lengths. Kutaro with the help of Mr. Pink dashes through the skies and on the extremely long body of the general, evading the lightning and the general's sharp scales, finally reaching the uppermost part of his body where the two clash.
After a long battle in the skies, Kutaro slices and defeats the general, but his defeat does not stop the souls from reaching the Moon Bear King as the gateway between the Moon and Earth is still open. He was the eleventh general to be defeated.