The Red Dragon had existed for centuries as a secretive criminal organization. Members such as Mavado were highly skilled and disciplined warriors. But in the last century, many of the more reckless members, dissatisfied with the Red Dragon and it's strict code, broke away to form their own gang, the Black Dragon. Since then, it had been the Red Dragon's number one priority to completely eradicate the Black Dragon.

During the events of Mortal Kombat: Armageddon, it was revealed that Daegon was the founder of the Red Dragon clan. The organization was named after Caro, a red dragon assigned to watch over Daegon as he was kept in hibernation awaiting the call of Blaze.However, Caro mistakenly awakened Daegon prematurely.

Daegon initially formed the Red Dragon to track down Blaze and prevent Taven from defeating him. It was also revealed that the Red Dragon clan has begun plans to create human-dragon hybrids.

Significant Characters: Daegon, Mavado, Hsu Hao