Although this little mystical-looking creature resembles a dragon, it’s only a sea slug. It feeds on other pelagic creatures like the venomous cnidarian. Picking up one of these isn’t recommended, the ability to store nematocysts within its own tissues, to be able to eat other venomous creatures, also allows them to deliver a painful sting.
These slugs don’t grow to be much larger than 3 centimeters in length. You won’t find these in U.S waters, they are found in the East and South Coast of South Africa, European waters, the east coast of Australia and Mozambique. They float upside down on the surface tension of the ocean. Their gas-filled sac in its stomach allows them to float on the water’s surface.
Here is a video of a few that were collected in New South Wales.