Dragon materials are dropped by the Dragon Lord.

Dragon Bones

Dragon Bone
Dragon Bones are one of two special items dropped by the Dragon Lord. They are required in the Dragon Bone Drill, Dragon Lord Armor, and the Quadro Cannon.

(Note: This Item Is No Longer In The Mod, It Is No Longer Required In The Recipes It Was Needed In.)

Dragon Scales

Dragon Scale
Dragon Scales are the other special item dropped by the Dragon Lord. Its sprite is a recolored Shadow Scale. They are also required in the three items mentioned above.

Dragon Lord Bait

Dragon Lord Bait 2
This item is the vital resource in creating the Dragon Spine. It is only found in the Sky Fortress.