Magic Dragon was the personal Imperial-class Star Destroyer of Grand Admiral Miltin Takel.
Behind the scenes
Dan Wallace originally named the Magic Dragon in a segment of his Grand Admirals article that was cut, and was therefore unofficial until being mentioned in Barely Tolerable: Alien Henchmen of the Empire web article.
"Magic Dragon" was a reference to Takel's drug use and the hidden meanings of the song Puff, the Magic Dragon. However, the rumors of the song relating to drugs are untrue.
Sources
"Who's Who: Imperial Grand Admirals" — Star Wars Insider 66 (First mentioned) (Cut content)
Grand Admirals: What Have They Got in their Pocketsses? on Continuity, Criticisms, and Captain Panaka — Daniel Wallace's StarWars.com Blog (original site is defunct)- Barely Tolerable: Alien Henchmen of the Empire: Part 2 on StarWars.com (original link is obsolete)
