Dragon... The Guardian of the Lost History (竜...失われた歴史の番人, ryū...ushiwareta rekishi no bannin) is the second episode in the 1998 anime series.
While Orson is recovering from his battle with Parn, Leylia recalls the story of the fall of the magical kingdom of Kastuul. Following a failed experiment for the sorcerers to gain more powerful magicks, Kastuul was destroyed leading the barbarians to revolt and destroy the city of Kuudo. Kuudo's governor, Saluvan, had dispatched his dragons over Lodoss to guard his treasures so that one day the power of Kastuul would be revived. Another Kuudo noble, the sorceress Karla, is killed in the battle but is able to remain immortal by forever transferring her soul to others using the circlet on her head. Slayn recruits Parn, Cecil and Deedlit to stop Ashram from collecting these treasures and Shiris and Orson join them. They deduce where Ashram is heading next and head towards Flaim to recruit King Kashue. In Flaim itself, Ashram attempts to recruit Hobb the priest of Myrii, the god of war, to help him overthrow King Kashue in order to unite Lodoss.