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Dragon Fear is an innate instantaneous aura that has a 30' area of effect. Depending on the Dragon, this effect may be reapplied at a regular interval, such as once every round or less frequently. It affects only Dragon enemies. The effect is applied almost with no delay using SPIN895.SPL "Dragon Fear". The innate spell-like effect has no assigned school or type and has power level 0. Enemies not immune to fear must save vs. spell with a -4 penalty or be under an Opcode 24 "Horror" effect, also referred to as Panic in the game - for a duration of 10 rounds (60 seconds).

A failed saving throw will display a "Panic" icon in the victim's portrait. Additionally, the victim will also suffer a -2 THAC0 penalty as well. When under a panic effect, the victim will run about aimlessly with a yellow circle around their map screen animation.

Dragon Fear is unaffected by magic resistance or spell level projections (such as Globes of Invulnerability or Spell Deflection). The effect cannot be dispelled. Spells that remove fear will bring the affected victim out of the Horror/Panic state. Additionally, a sound effect will be played if anyone is affected by the Dragon Fear, and another will play when the spell expires.

There is another Dragon Fear innate spell in the EE game assigned as OHBDRAG2.SPL. This particular Dragon Fear ability is mostly similar to the above version, but the saving throw has a bonus of +7.