diff --git a/build/build.tcl b/build/build.tcl
index 47dfe8d2..88979d6c 100644
--- a/build/build.tcl
+++ b/build/build.tcl
@@ -190,6 +190,11 @@ respond "*" ":midas device;jobdev arc_syseng;arcdev\r"
 expect ":KILL"
 respond "*" ":link device;jobdev ar,device;jobdev arc\r"
 
+respond "*" ":print channa;..new. (udir)\r"
+respond "*" ":midas channa;atsign taraka_syseng; dragon\r"
+expect ":KILL"
+respond "*" ":link sys; atsign dragon,channa; atsign taraka\r"
+
 respond "*" "\005"
 respond "sim>" "at tu0 out/output.tape\r"
 respond "sim>" "c\r"
diff --git a/src/syseng/dragon.206 b/src/syseng/dragon.206
new file mode 100644
index 00000000..0c76b14a
--- /dev/null
+++ b/src/syseng/dragon.206
@@ -0,0 +1,104 @@
+;;;-*-Midas-*-
+
+TITLE DRAGON -- top-level daemon
+	
+;;; The ITS system job looks for the file DSK:SYS;ATSIGN DRAGON, and if it exists, 
+;;; launches this DRAGON daemon. When launched, DRAGON logs in as TARAKA and searches
+;;; the CHANNA directory for files whose FN1 is RAKASH. Any that it finds, it launches
+;;; as daemons.
+
+;;;
+;;; The source for DRAGON has been long lost. When ITS was active, the last time it
+;;; was built was in 1977. This source was recreated from the binary by EJS on
+;;; on 2016-11-15. When assembled, this version results in an identical binary
+;;; to the one that was included in the PI/MX distribution, and therefore to the
+;;; version in place on MC/AI at the time of the shutdown of those systems.
+;;;
+;;; Note: I'm sure some of the constants in this file should be replaced with
+;;; symbolic constants. At this point, I haven't yet figured out what they should
+;;; all be (it's been over 36 years since I last used ITS at MIT.  As I and others
+;;; see fit, we can update this source to be more in keeping with the standards
+;;; expected of ITS developers!  -- EJS@MIT-MC (today: eric@swenson.org)
+;;;
+
+dirchn=4
+filchn=5
+jobchn=6
+
+dirbsz=2000
+
+nop=255000000000
+
+taraka=sixbit/TARAKA/
+channa=sixbit /CHANNA/
+rakash=sixbit /RAKASH/
+
+lpdl==:100.
+.vector pdl(lpdl)
+
+go:	.call [setz        ;; login as TARAKA
+	   sixbit/LOGIN /
+	   [ taraka ]
+           setzi 0]
+	nop                ;; ignore errors logging in
+	.suset [.ssnam,,[channa]]       ;; set SNAME to CHANNA
+	;; open CHANNA UDIR
+	.open dirchn, [.bii,,'DSK ? sixbit/.FILE./ ? sixbit /(DIR) /]
+	  jsr done
+	.iot dirchn, [-dirbsz,,dirblk]  ;; read in UDIR
+	.close dirchn,
+	move 1, dirblk+1   ;; get offset to name area into R1
+	addi 1, dirblk     ;; convert to address of name area
+filoop:	cail 1, [ taraka ] ;; have we reached end of buffer?
+	jsr done           ;; yes, abort
+	move 2, (1)        ;; get FN1 into R2
+	camn 2, [ rakash ] ;; is FN1 == RAKASH
+	.call [setz        ;; yes, open the file
+	  sixbit /OPEN  /
+	  [ .uii,,filchn ]
+	  [ sixbit /DSK   / ]  ;; DSK: device
+	  [ rakash ]           ;; FN1
+	  1,,1                 ;; FN2 (from dirblk in R1 + 1)
+          400000,, [ channa ]]
+	jrst nextfl        ;; try next file
+	  .call [setz            ;; start create daemon job
+	    SIXBIT/OPEN  /
+	    [ 1,,jobchn ]
+	    [ sixbit /USR   / ]  ;; USR: device
+            001000000000         ;; use uname of TARAKA
+            400001,,1]           ;; use jname of FN2 of daemon
+	  jrst nextfl            ;; process next file on error
+	  .reset jobchn,
+          .call    [setz         ;; load program into job
+	    sixbit/LOAD  /
+            001000,,jobchn       ;; specify job channel
+            401000,,filchn]      ;; specify file channel
+	  jrst nextjb              ;; on error, clean up job and process next file
+	  move 2, 1(1)           ;; get FN2/Job name in R2
+          .uset jobchn, [.ssnam,,2]  ;; set SNAME of job
+	  .iot filchn, 2             ;; get starting address?
+	  hrrzs    0, 2              ;; zero out instruction opcode?
+  	  .uset jobchn, [.supc,,2]   ;; set starting address of new job
+	  .call [setz                ;; disown job (doc doesn't seem to match
+            SIXBIT/DISOWN/           ;;  this call from sysdoc; _calls 127
+            201000,,jobchn           ;; don't know what these bits do
+            405000,,5]               ;; don't see second argument documented???
+ 	 .value 0                    ;; kill ourselves on error?
+	 caia 0, 0
+nextjb:    .uclose  jobchn,          ;; kill job
+nextfl:  .close  filchn,             ;; close file
+         .close   jobchn,            ;; close job
+         addi     1, 5               ;; compute address of next file
+         jrst     filoop             ;; and loop
+
+done:  0
+       .logout  0,
+       .value   0
+
+dirblk:  0
+         0
+
+bufsize==1632
+loc .+bufsiz
+
+	end go