Xanadu's counterpart to the Red Tatzlwurm, the Dragon is the mascot of Xanadu.
Beginning life as an iguana, the Dragon was mutated in an experiment by the science teacher turning it into a crocodile sized monitor lizard. The only one who can control the Dragon is Xanadu's vice principal Clarence and as such is most used in Clarence's threats toward the student body.
The Dragon is locked beneath the school and unless released stays down there. When it is released, the Dragon is usually kept on a chain leash but the leash will be removed when Clarence sees fit to remove it.
Clarence apparently refers to the Dragon as Hannibal.