Sacred 2:Almost Godlike

Quick Walkthrough

Talk to the Seraphim Nicole. She will teleport you to the dragon's location.
Talk to Magmadur, the dragon.
Kill Magmadur. You will automatically be teleported back to Nicole's location.
Talk to Nicole again to get your reward.

Detailed Walkthrough

Starting from the Resurrection Monolith in the northeast of the Seraphim Island, travel south along the road. After going a short distance, there will be an opening to the east with benches and a dragon statue commemorating the alliance between the Dragons and the Seraphim. On the north side of this opening, you will find a Seraphim named Nicole. Nicole will tell you about a marauding dragon named Magmadur. The dragon has eaten a Seraphim named Katharina, and, for that, Nicole asks you to kill Magmadur.

This dialog is different for the Seraphim and for the other characters.
Seraphim's version:

Nicole

Kill Magmadur the dragon!

Hello sister. As you know, the Seraphim and the dragons were once allies, but that was long ago. Recently the dragon Magmadur has become a thorn in our side. He's been destroying Temples and has devastated the area several times. That alone wouldn't be reason for violence, but he also killed our sister Katharina! She tried to reason with him, and he killed her just for that! Sophia has ordered us to end his miserable existence. Are you willing to punish Magmadur for his crimes? I’ll send you to his cave right away.

Ok

Other characters' version:

Nicole

Kill Magmadur the dragon!

The Seraphim and the dragons were once allies, but that was long ago. Today we mostly go our separate ways. Recently the dragon Magmadur has become a thorn in our side. He's been destroying Temples and has devastated the area several times. That alone wouldn't be reason for violence, but he also killed our ambassador, my sister Katharina. That's why Sophia has sentenced him to death. Are you willing to punish Magmadur for his crimes? I'll send you to his cave right away.

Ok

Once you agree, Nicole will teleport you to the dragon's lair.

Magmadur will try to eat you as well.

Magmadur

You dare to threaten and even intend to kill me! That puny Seraphim also believed she could order me around. Her flesh was tender. Did you know that the flesh of immortals tastes different from that of mortals! It's sweeter somehow. It's not very filling though, so you've shown up at the right time. Prepare for death!

Ok

After you defeat the dragon, you will automatically be teleported back to Nicole. Speak with her again to claim your reward.

Nicole

Well done! Sophia will be happy. Take this as a sign of our gratitude.

Ok