Go to the caves. Some rocks should have been cleared near the lake. Go forwards and you
should come across a dragon. Now, press y, choose the "greeting" rune and confirm. Now go
near the dragon and press x. After the talk, go get "Freaky Frog Fat", "Ancient Dragon
Scales" and "Mandagora Root" from Malila. You should be able to get the scales by
selecting "work" when speaking to Malila, and then selling an Emerald, Aquamarine or a
Sapphire to her.

First thing you need to give to the dragon is the freaky frog fat, and after about one or
two hours, the scales. Again after about one or two hours, you can give him the Mandagora
Root. He'll be ready to leave problem solved :)

Thanx for helpinng me me out it was so fun to do but hard to work out!!!