The crossword solution for the term MAGICAL DRAGON is PUFF. This is a reference to the popular children's story, 'Puff the Magic Dragon, ' which tells the story of a dragon named Puff and his best friend, Jackie Paper. Puff lives in a magical land called Honalee, where he spends his days playing with his friends and singing songs. The story has been adapted into a movie, a musical, and a television series.