In the 26th century, two great empires are balanced on the brink of war: Earth and Draconia. The tensions began when a neutron storm damaged an Earth ship and a Draconian ship on their way to an unarmed meeting of peace. The Earth ship was badly damaged, and mistook the unarmed Draconian battle cruiser for a warship, not knowing that custom dictated such a vessel for a Draconian noble. When the Earth ship's hails went unanswered - because the storm had disabled the Draconian communications system - they fired, and destroyed the Draconian ship.
The only thing preventing war is a treaty between the two empires, preventing either from crossing a mutually-agreed-upon boundary. But as Earth and Draconia expand their empires through the galaxy, suspicious eyes are on the other. The Earthmen call Draconians "Dragons", a derogatory term which seems to be partly inspired by their image. The Draconians are tall, stately beings with cone-shaped heads topped by a ridged crest. Their skin is olive-green, and mostly covered (it would seem) in large bumps. Their ears are large, with a serrated edge, and they wear neat beards. Draconian nobles are outfitted in long olive robes topped with bump-covered shoulder plates which, for the more important members of Draconian nobility, swoop up to large points. Nobles like the prince and ambassadors also wear a large green crystal hanging around their necks. Their Emperor, whose shoulder plates rise to the highest peaks, wears a blue crystal. Draconian society follows a strict code of honor - for example, when a member of the court of nobles approaches the Emperor, they must bow to touch the Emperor's hand to their head and then say "My life at your command." Females, on the contrary, are not allowed to speak in the Emperor's presence.
Their empire expands using a number of impressive ships such as the Galaxy-class ship, which is equipped with neutronic missiles. Their other technology includes a mind-probe, comparable to those used by Earth, and they also carry guns.
The Doctor spent some time on Draconia in the 21st century, at which point he helped them fight a great plague from outer space. As a reward for his aid, the fifteenth Emperor conferred upon him the honor of being a Draconian noble.
The Master uses a hypnotic device to make the Draconians see Earthmen, instead of Ogrons, attacking their vessels. He also makes the Earthmen see Draconians attacking theirs, thus pushing both empires into an inevitable war. When the Doctor discovers this secret, he tries desperately to force both sides to listen to the truth, but he is not believed until an attack on the Draconian Emperor's court results in an Ogron being left behind. With this proof, he is able to convince the Draconians into helping him uncover the Master's scheme.