The Dragon is a human wizard living in a tower deep within the Hart’s Wood.
The party first hears of the Dragon after their initial attempt to glean information about the blue arcane stones found inside the cursed beasts they had slain. One of the wizards at the Academy of Arkanum directed them to seek him out.
When the group finally arrived at the Dragon’s tower, they encountered a dire bear in the midst of a fight with someone, likely a wizard based on the homunculus that saved them from having to face the bear in that moment. Later, the party learned that the bear was indeed fighting the man known as the Dragon, and that he had been killed in the fight.
Back at the Academy, the party was informed that though the Dragon had lived alone in the woods for many years, he had been acting as a great force for good. He had been pivotal in acquiring the Book of Vile Darkness from the Deathstalkers of the Order of Bhaal. In his escape from the Order, he was responsible for the death of Malella, the mother of the Three.