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Green Dragon is an alcoholic beverage made by leaching the leaves of the cannabis plant in a high-proof alcohol, most commonly vodka. The THC dissolves into the alcohol resulting in a dark green or brown liquid. Sugar is often also dissolved in the alcohol to mask the extremely bitter taste of the dissolved cannabinoids.

Green Dragon is a method for extracting the active ingredients found in cannabis buds. These chemicals, mainly tetrahydrocannabinol or THC, are insoluble in water, but much more soluble in organic solvents such as alcohol. In addition, the chemicals responsible for the bitter and "grassy" taste of cannabis buds are insoluble in alcohol, but more soluble in water. The best results are obtained by using an extremely concentrated alcohol, such as vodka or, if available, a near-pure grain alcohol such as 195-proof Everclear.

There are two methods for extracting the cannabinoids from the buds. The first involves heating the alcohol to improve its power as a solvent. The cannabis buds are stewed in about 25cl of spirit, preferably heated in a water bath to reduce the possibility (probability, in the case of heating high-proof alcohols such as Everclear) of ignition of the alcohol vapours. The temperature of the spirit should be maintained below the boiling point of ethanol (78.4º C)(173ºF) to prevent the buildup of fumes. The majority of the soluble cannabinoids will be extracted by this method after about 20 minutes of heating.

The second method, which is considerably more low-tech, involves leaving cannabis buds, leaves, and stems in the spirit for several weeks or months. Over time the cannabinoids will leach from the plant matter in much the same way as in the heating method. It is common to simply open a new bottle of spirit, poke several cannabis buds into the bottle (it may be necessary to pour off or drink some of the spirit first) and reseal. The bottle must be kept tightly sealed to prevent the alcohol evaporating from the spirit. The bottle must be kept in a dark place because tetrahydrocannabinol decomposes under the influence of light.

There is some evidence to suggest that baking (as in "drying") the dry buds and leaves prior to adding them to the alcohol in either method increases the potency of the resulting preparation^[1][2]. This is because the baking process converts insoluble tetrahydrocannabinol acids into soluble THC (see decarboxylation).

Although Green Dragon can be consumed by itself, it is more often served mixed with other drinks, such as soft drinks, flavored waters and vanilla extract. A popular ^[3][4] recipe involves mixing 3 parts lemon-lime soda, 1 part Green Dragon and a dash of honey or sugar.

Another preparation, known colloquially as Green Monster, is prepared from two parts Mountain Dew, two parts Green Squall Powerade, and one part Everclear Green Dragon. Assuming a proof of 195 on the spirits, the resulting beverage is still 40 proof, so caution should be exercised.