The thirteen Elder Dragons were created by Balor at the end of the first age. They spread across the known world bringing terror and destruction wherever they flew. The domination of the dragons lasted for centuries. Balor, the bringer of chaos, bestowed two 'gifts' on the dragons in addition to their normal range of abilities. The first was the ability entice people to their lairs. The older and more powerful the person, the greater the pull of the dragon's aura. The second 'gift' was a weak spot in their defences.

The elder dragons had a great love of magic, and this manifested in their destructive activities. Mages would often be allowed to research powerful spells and create powerful artifacts, so sure were the dragons in their ability to destroy anything that attempted to kill them. This biased view of their abilities was the downfall of several of the dragons.