Paper Dragons are not truly living creatures. They are pieces of parchment enchanted by magic, and as such, are very vulnerable to fire. However, they behave almost like dragons. The only place where their behavior differs is breeding: paper dragons cannot breed.

The Paper Dragon is a playful soul who loves to tell stories. His favorite one claims that he found two friends, Raggedy Ann and Andy, who he had a wonderful adventure with. The two were dolls that had special abilities, and could come to life through magic just as he had. They had a wishing stick and stone, and they wanted to help a young girl find her father. However, an evil man wanted The Paper Dragon as his own. Most hatchlings believe him, but the adult dragons in the cave pass his stories off as myths. They don't believe that The Paper Dragon could do any of those things, let alone meet many others who were merely toys. The Paper Dragon continues to tell his tales, insisting that they are true. He believes that sometimes the best things in life are those you can't see, and that everyone needs a little faith.