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 stereotypical 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 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.
The blanket dragon is a large dragon made almost entirely out of pillows. The dragon's body is made out of a very large single red pillow, with two small red pillows for feet. The dragon has a segmented tail made up of many small red pillows, a segmented neck made of six small red pillows, a head made out of an open red pillow with parts of the pillow pointed into teeth, and two small pink decorative pillows for eyes. The dragon has an extremely large purple blanket draped over its body which the dragon uses as wings for flying.
- Blanket Dragon looks similar to Fangora, a boss from the Kirby game Kirby's Epic Yarn, as they are both dragons made from textile.