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.

As the dying mage set down the enchanted paper in the notch of the tree, a storm started to brew and the wind spiraled about. The mage knelt and vanished, his spirit disappearing into the paper and forming it into an egg. The egg sat in the tree through the night, and although all the mage's memories were inside it, the rain wet the paper egg and all the memories of the mage's past were washed away. The next morning, Pawz and her pygmy dragon were wandering through the forest when they stumbled across the egg. Pawz stole the egg from its place and took it home. As time passed, the egg grew up into a paper dragon, and although it harnessed the power of magic, it never remembered its past.