The Blanket Dragon is a creature that appears in the episode "Puhoy." The Blanket Dragon makes a short appearance after several Pillow People run past Finn, alarmed by the approaching Blanket Dragon. After running into his leg, a small pillow child warns Finn, "Hey, mista', you better get wunning! Blanket dwagon!" in a steriotypical child like voice.
Just after the Blanket Dragon flies in, Finn jumps at the dragon and slices the dragon's neck, made out of pillows, with his sword. As soon as the dragon's neck is cut, feathers start pouring out out of the sliced pillow segment, causing the dragon to scream in pain. The dragon's body then falls apart, after which the pillow people come out of hiding and crowd around Finn, excited about the dragon being slain.