In Red Dragon Island, there are two dragons. The Red Dragon and the Cloud Dragon. The Red Dragon spews fire from its mouth whilst the Cloud Dragon spews rainwater. When the Shogun attempts to control the Red Dragon, the Red Dragon gets out of control and you must ride the Cloud Dragon into battle so as to defeat the Red Dragon before it burns down Old Japan. Both dragons inhabit Old Japan.
There are two types of dragons, the Western dragon which is lizard-like and generally portrayed as evil and destructive, and the Eastern dragon, which is graceful and snake-like and are depicted as living manifestations of the forces of nature.