The New Year Dragon is a red Chinese dragon appearing only in You Dim Slum, You Lose Some. Unlike the other dragons of the series, he is not anthropomorphic.
When Sir Loungelot took the sword barricade off the dragon's door to pick his teeth, the dragon got out of the palace, which the emperor said would be bad luck, and told Loungelot to get the dragon back into China.
After many failed attempts, the dragon chased Loungelot around when he hit him in the head with one of Griddle's fruitcakes, distracting him long enough for Flicker to use more fruitcakes to build the Great Wall of China, thus keeping the New Year Dragon in China.