Festival director Simon Green said it was "a real coup" to secure one of New Zealand and Australia's most popular bands for the southern hemisphere's biggest winter party, which will open on June 25 in Queenstown.
Dragon formed in Auckland in 1972 and relocated to Sydney in 1975.
It took a break for several years before reforming in 2006, with Mark Williams as the frontman, replacing Marc Hunter, who died in 1988.
Williams' talents span the musical spectrum. His best-known song, Show No Mercy, was a Top 10 hit in New Zealand and Australia and was chosen to launch the 1990 New South Wales Rugby League grand final.
Dragon will be the main act for Mardi Gras, traditionally one of the most popular events on the 10-day festival calendar.
"We're expecting a really memorable concert that's uniquely Queenstown as our way of celebrating the start of winter," Mr Green said.
"What a buzz, particularly for Kiwis and Aussies, to get the chance to enjoy the much-loved anthems ... performed live against the backdrop of our awesome alpine scenery."
Also on the Mardi Gras bill will be Australian four-piece melodic rock band the Jefferson, which will be touring New Zealand and Australia before recording its debut album.
Local stars include the Cartel, the Sequin Sisters and a special appearance from the Lindauer Top Blokes.
A host of Queenstown's burgeoning talent would also perform on the Rockformation Stage on upper Beach St, Mr Green said.
Mardi Gras sets Queenstown abuzz with music, entertainment and food stalls from 5.30pm on the Tuesday of the Winter Festival.
