Dragon's Rathe is a series of volcanic caves beneath the Droog Village. The dragon Scorch resides in the main cavern upon a rock platform. Behind the main cavern is a series of smaller tunnels and caves with loot. The caves have a large number of pots and urns containing various loot.
There is also an abundance of gold as the dragon was used as a method of execution where convicts would be given arms and gold and sent to slay the dragon. Only one man "succeeded", where he killed a whelp near the entrance to the caves and fled. Dragon's Rathe was cleared by Lady Montbarron on the quest to "Slay the Ancient Dragon of Rathe."