Episode Title:Thomas, Percy and the Dragon.Episode Description:Percy is still gleefully teasing Thomas about the ghost engine prank. But the next night, Thomas has to take a paper Chinese dragon to the carnival. Percy has to stay in a siding overnight, and is terrified by the dragon when Thomas passes. The next morning, Percy tells the other engines about the dragon, but they refuse to believe him. As a result, Percy begins to believe that the dragon was just his imagination. However, he is proven wrong when Thomas arrives with the dragon. The two friends settle their quarrel and reconcile.