There are many different ways to defeat the last boss of the game. The most effective, and safest way to do this is to use the pillars for cover from his fiery breath, with the Grenade Launcher as your primary weapon. The Uzis are preferrable if you wish to charge into a head-to-head battle. Be aware that the main objective is to first bring the dragon down, then rush to its belly as quickly as possible, and pull the dagger from his heart.
After using the Mystic Plaque to enter the Dragon's Lair, slide down the slope and continue forward towards the body lying in the middle of the arena. Before advancing past the pillars, equip the weapon of your choice. As I said before, the Grenade Launcher will prove favourable when occasionally using the pillars for cover. The use of the Uzis in a head-to-head battle is also an option.
|Fighting the Dragon
As soon as your weapon is equipped, and your strategy is decided, prepare to fight the final boss of the game. Advance past the pillars, and the body lying in the middle will begin to transform. At this point, you can do one of two things; go forward and stand on the platform with him so that when he transforms, the blast blows you a safe distance away, or you can run backwards yourself, whichever way gets you the safest distance away from him. The first option is illustrated in the screenshot below.
As soon as the Dragon appears, refer to the strategy of your liking.
|Using the pillars for cover
Standing behind the pillars is the best way to avoid the dragon's fiery breath. This will give you a good opportunity to shoot him with as many grenades as you can. It takes 12 grenades to bring the Dragon down. The screenshot below shows the safest place to stand.
Whilst standing here, you can attack the Dragon by side-flipping to the left, out in the open where you will get a clear shot of him. Once you have shot him, he will begin to inhale. That's when you side-flip back behind the pillar, in order to avoid the flames.
Side-flip in and out whilst shooting him, and eventually you should have the dragon temporarily down.
If you wish to confront the Dragon head-to-head, the best weapon is the Uzis. Once the Dragon transforms, he'll come straight towards you. It is very important you do not come into contact with his claws, or else, you're dead. It is also important to face him directly, so you will be able to side-flip parallel to his breath, easily dodging the flames. Maintain a constant firing rate whilst avoiding the flames. Running behind the Dragon is also another good idea. It's best not to fall into the water, because it's very hard to get out without getting set alight.
If you do happen to catch fire, make your way to the water as fast as possible. I wouldn't suggest going into the water other than when you catch fire, because it's not necessary unless you're going for a perfect item score. So in other words, avoid getting set on fire.
Once you have stunned the dragon, immediately run towards his belly and press Action. Sometimes, Lara won't perform the action, and might take a few tries. A good idea would be to save your game the very same second you stun the Dragon. This will give you a better chance of pulling out the Dagger without having to bring him down all over again. To avoid missing the Dagger, try running straight into his body whilst pressing Action.
Once you have succeeded, you will have pulled the dagger out of his heart and turned him into a skeleton. Congratulations, you have just defeated the final boss of Tomb Raider 2. Now you had better get the hell out of there...
Make your way towards the exit door, and run through the passage. Make sure you don't stop running, because if you do, it is more likely that you will get hit by the collapsing roof tiles. Even running and jumping is an option. Once you have bypassed them, keep running towards the end of the passage until you are clear.
By EscondeR: To kill the dragon fast and safe I've used this method:
Make it "stick" to one of the columns with it's head and one of the paws, so it can't breath fire on you.
By jeffareid: Dragon's Lair using the pillars for cover. As posted in that picture, Lara doesn't need to move at all. She can shoot the dragon near it's hind left foot.
By fallenangle: As I guess many people here know it is very possible to take down the dragon without moving at all from beside the pillar is you're positioned correctly. If you're in one particular position you can get the dragon pressed against the opposite side of the pillar into a repeating cycle, raising it's head to breathe fire but not being able to hit Lara. However Lara can lock on with her guns momentarily - in this way it's a long but easy job to take it down just with the pistols.