Stretching from Skeppsbron to Österlånggatan, it forms a parallel street to Stora Hoparegränd and Ferkens Gränd.
)[1][2][3] The alley is named after the tavern Draken ("The Dragon") once found in the western end of the street.
During the 1660s it was owned by a Melchior Schipman; in 1682 bought by Jöran Berg and renamed Förgyllda Draken ("Gilded Dragon"); and finally discontinued after the latter's death in 1722.
[1][3] The proletarian author Erik Asklund (1908–1980) wrote the novel Drakens gränd in 1965 as part of a trilogy.
[4] Drakens gränd is also the name of a company owned by King Carl XVI Gustav (1946-).