Developed by the space colony of Neo China, the Dragon Gundam is assigned to Sai Saici, the young heir to the martial arts traditions of the legendary Shaolin Temple. This mobile fighter is both agile and highly adaptable, able to fight in any environment from sandy deserts to the depths of the ocean. In addition to the extendable, fire-breathing Dragon Claws built into its forearms, the Dragon Gundam is armed with twelve Feilong Flags - multipurpose beam weapons which can be used to pin down enemies, and also function as both spears and protective shields. Perhaps its sneakiest weapon is the dagger-tipped queue attached to its head, a close-range weapon which has taken more than one foe by surprise.

Before Shinjuku arc, Dragon Gundam got infected with DG Cells. Although it doesn't have any visible changes in the TV series, Super-Class! Mobile Fighter G Gundam: Shinjuku/Undefeated of the East!, however gives it a new design that incorporated parts resembling the JDG-009X Death Army. The arms of DG-Cells infected Dragon Gundam have a different design from each other with the right arm appearing to be a Death Army-like creature. It has enhanced speed and power, but never seen using the Feilong Flags.