Dragon's Peak is located right next to Canaan. Now enter the mountain, follow the path, and collect 3 chests.
On the summit, you'll be kidnapped by the Dragon to its nest; examine the bush to continue the story.
Bestiary Checklist:
Boss: Bahamut (RUN, do not fight)
Don't bother fighting him because you cannot win, so choose the "Flee" command to run away from the battle, then watch another scene and you will reappear near Healing Copse.
Chests/Items:
- C-055: Gold Needle - bottom-right corner.
- C-056: Aero - top chest.
- C-057: Gold Needle - chest on the far west side.