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This mighty dragon lives in the cavern near the Casba settlement on Motavia during the days of Lassic's reign. It is also known as the Blue Dragon, even though it is actually more of a purple color. Alis and her company must slay this scaled beast to obtain the Amber Eye jewel, which is later traded for the Eclipse Torch. If you look closely, you can see an amber colored decoration on the dragon's forehead. That is probably the jewel itself.
In the Chinese version of Phantasy Star: Deluxe Edition, this creature has a name that loosely translates to "Dragon Sage" and is named internally in English as "dragonwise." Perhaps this is meant to be the most intelligent of all dragons?