The Dragon Dance takes the form of a red, yellow and orange Chinese dragon head with yellow horns, white teeth, a yellow muzzle, red lips, and round eyes, both as an icon and on the tracks. Also, behind its head, it leaves a red energy trail.
In gameplay, the Dragon Dance can only be obtained at random from Item Boxes by Lunar Blaze. As with most other Items, Metal Sonic can also use the Dragon Dance if he uses the Steal Item to steal it from the aforementioned user.
Once obtained, the player can utilize the Dragon Dance by pressing its icon on the bottom of the HUD. When used, the user sets loose the Dragon Dance projectile which will travel down the lane it was deployed on in front of the user. After flying down the lane for a while, the Dragon Dance will then turn around and fly in the opposite direction. In addition, the Dragon Dance will pass through any obstacle as it moves forward. Rival characters that make contact with the Dragon Dance will take damage, causing them to lose Rings and slow down momentarily. To avoid the Dragon Dance, the playable character has to step out of its lane.
The Dragon Dance can also be upgraded by leveling the user up to level 6 and 12 respectively. For each upgrade, the player will increase the damage dealt with the Dragon Dance.