The story follows the adventures of Ethan Kendrick, charged in his childhood by the enigmatic Jack to protect the Yuh Yi Joo, an individual who had been born able to change an Imoogi chosen by heaven into a Celestial Dragon, from a corrupt Imoogi identified as "Buraki", who was prevented from obtaining it in the past by Ethan and Jack's previous incarnations.

Despite losses, this army overwhelms the human forces, while Ethan and Sarah escape the city, but are subsequently captured by the Bulcos and taken to a menacing fortress in the midst of a darkened desert landscape.

Veteran actor Robert Forster landed a pivotal role and Jason Behr and Amanda Brooks were cast as the two young leads.

The film's final cut was edited down to 92 minutes for its South Korean and American release, after getting feedback from preview screenings.

China was the only one to live up to the South Korean release record, spawning 3,000,000 admissions and a premiere including pop idol Libing Chen.

The website's critics consensus reads: "Dragon Wars' special effects can't make up for an unfocused script and stale acting".

[10] The Hollywood Reporter's Frank Scheck said that "the CGI effects are undeniably impressive" but that "the laughable story line, risible dialogue and cheap humor ... seriously detract from the fun".

[11] Luke Y. Thompson in L.A. Weekly derided the film as one "for connoisseurs of the 'totally preposterous crap' school of fantasy cinema... You know who you are: You have all the Warlock sequels on Laserdisc [and] the complete Leprechaun series on DVD" and says it's "funnier when it tries to be serious than when it goes for the gag".

[12] Within nine days of its South Korean release, D-War attracted five million viewers, setting a national box office record for an opening week.

[13][14] In March 2016, a sequel entitled D-War II: Mysteries of the Dragon was announced to be in development and to be co-financed with China's H&R Global Pictures.