The Two-Headed Dragon was a guardian to the exit to Frozen Reaches to Paradise Lost.
Background[]
It once guarded the Drake Tower, the passage from the Frozen Reaches that leads to the gateway that leads to the Temple of the Sun, until Connor defeated it. It was much like the hydra in that even if it its head was removed at the neck it's neck would regrow and it could regenerate new heads. Connor had to use a Flame Sword taken from the Impervious Ice to cauterize its necks so they couldn't regenerate as revealed by the instructions on the Northwest Pillar.
Behind the scenes[]
This is called a 'Two-Headed Dragon' or a 'two-headed dragon' in KQ8 manual. it's ability to regenerate is inspired by the greek Hydra. A hydra was actually supposed to be an enemy in the removed Daventry Seaside zone which would have been the first area of the game. This character is also a nod to dragons with more than one head like the Three-headed Dragon of KQ3.