The Calico Dragon
Encyclopedia
The Calico Dragon is a Happy Harmonies
Happy Harmonies
Happy Harmonies is the name of a series of animated cartoons distributed by Metro-Goldwyn-Mayer and produced by Hugh Harman and Rudolf Ising between 1934 and 1938....

 cartoon short. When a little girl falls asleep after reading a fairy tale
Fairy tale
A fairy tale is a type of short story that typically features such folkloric characters, such as fairies, goblins, elves, trolls, dwarves, giants or gnomes, and usually magic or enchantments. However, only a small number of the stories refer to fairies...

to her doll, her toys come to life. The toys act out a fairy tale in which a prince has to fight a dragon. The cartoon was nominated for an Academy Award for Best Short Subject (Cartoon) in 1935.
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