A pair of proud dragon parents hatch a baby named Dominic. They fly across the kingdom to show their little one the world. As Dom grows he learns to all kinds of fun dragon-y things. One day, he meets a boy named Bo and gets invited to a swimming party. During the party, the kids see a group of people rowing a canoe. Dom wants to learn to paddle!

The adults in the boat laugh at Dom and Bo, saying they don't have time to teach them with the big race next week. They ask several others to help them learn, but no one is willing to help but the Emperor himself, who lends the pair a canoe. The motley crew (representing all the animals of the Chinese Zodiac), jumps in the new boat, but find paddling difficult. Dom in particular can't seem to find a place to put his big tail and turns the boat over, spilling everyone into the water.

*Spoiler Alert*

Despite taunting from the other boats paddling by, the group decides to keep trying. Even Dom's parents tell him he has better things to do with his time, but Dom has a plan. The young dragon becomes the boat. "There are no rules against a dragon boat," say the friends as they sail easily by the other vessels on the water.

On race day, Dom and his friends are excited but nervous. They are in last pace half-way into the race when Dom has another idea ... he takes a deep breath and makes himself as straight as an arrow, slicing quickly through the water and passing everyone. Soon they can see the Dragon Gate (finish line) and are neck in neck with another boat ... but just as they get to the end, Dom stretches his neck a bit. 

"The dragon boat has won by a nose!" declares the Emperor. The winners receive a large pearl as their prize. Dom and Bo continued to be friends, too. "From then on, Dom inspired many dragon boat races. And everyone from heaven below agreed that it was a magical year of the dragon."