The Legend of the Dragon is centered on the story of the signs of the ancient Chinese zodiac, which hold great mystical power. Each sign has its own temple, and each temple has its own guardian. The evil Zodiac Master is trying to attain the powers of the twelve guardians as that will make him virtually unstoppable. One thing stands in his way: the Golden Dragon. When the Chinese martial arts student, Ang, is chosen over his twin sister Ling to be the next Golden Dragon destined to fight the Zodiac Master, Ling joins the dark side in a quest for redemption. In the battle between good and evil both heroes and villains have magic wristbands that can transform them into mythical warriors, giving them the precise likeness and superhuman powers of the zodiac creature they represent.

The game recreates the ambiance of the popular cartoon series using a Cell-Shading rendering engine which, following the cartoon series, puts a strong emphasis on magic and action. Four challenging single-player modes: Quest, Arcade, Survival and Time. Three exciting multiplayer-modes: Versus, Team Battle and Tag. Each playable character has a unique fighting technique and, therefore, must be played differently.