The Stone Dragon is a giant dragon of stone, which drooled lava into the seas near The Tomb of Lehparsi. It was noticed by the heroes, but before they could investigate, they had to seek shelter in the tomb from the worsening storm. Little else is known of the dragon, if it is living, or simply a giant man-made structure.
It can later be seen to be near The Peculier House, and one of the legs on that side of the dragon is made of sand, and it can be more clearly seen that it has wings made of glass. All that is within the dragon on the museum server was a massive pool of lava and masses of torches. You are also able to climb up into the mouth and look out to the hold of Icaria.