Legend of the Stone Dragon
There is, of course, the Great Silver Wyrm that saved the forest's indigenous people from the Kingdom of Many-Arrows. The Church of the Silver Dragon is named for that mythic dragon. The events relating to that History took place hundreds of years ago.
But I believe you are looking for information about a different dragon, a red dragon. Yes, during an age before the Kingdom of Many-Arrows, when the Dwarven halls filled the mountains to the East and the Elves filled the forests here.
An ancient evil, Gremririud, set its sights on the Dwarves' wealth. At every turn, the mighty Dwarves were turned back and surprised by the dragon and its forces. Cities and fortifications all laid in ruin. Kobolds and other creatures, including many cultist men and women from the South, fought the dwarves to their homes. Clans and families became veterans down to the smallest Dwarf.
As a last-ditch effort, the Dwarven king, Rairihiri Greatbelt, used himself as bait to draw out Gremririud. The king's diversion worked. His elite forces harried the dragon. With chain and magic they kept the dragon from slipping away. The fighting lasted for days. In the moments before the last dawn, with many of the Dwarvish forces scattered and dead, the king had one more trick to play. He opened a potion in his palm and strode to stand against the dragon. The dragon's breath weapon was exhausted, but it easily grabbed the dwarf, planning to crush it and end the fight. The liquid that flowed from the dwarf was not blood but a thick sticky substance that engulfed the dragon and turned it into stone.
Over several days, word spread. Dwarves started gathering to see the victory. Celebrations began, but it was then that the remaining dwarves discovered the secret of Gremririud. He had a twin. They had been out-maneuvered by the vicious planning of the two dragons able to operate as one.
With his brother turned to stone, Pavros, "Eater of All," descended on the celebration. After a century of war, the Dwarves would not run, and a new battle began. Pavros lost an eye and the use of his right wing before escaping. The 50,000 stones of the Dwarven monument of Grunhaln mark the losses they suffered during those difficult days.
The Kingdom of Many-Arrows flooded the lands with their war soon after that. As a result, the statue of Gremririud was lost to time. Pavros crawled to a hole to heal or die, as he was never seen again. Dragon worship lost favor in the South after this defeat, although I would imagine groups still seek the statue of Gremririud, whether out of faith, greed, or power.
Rest in peace, King Rairihiri Greatbelt. Your courage will never be forgotten - especially not since you managed to make a giant stone statue of a dragon even with your death. Well done, you.
Truly an epic feat. Thanks for reading!