A whimsical chibi dragon with oversized eyes resting in a dense, enchanting forest, surrounded by vibrant foliage. The scene is bathed in iridescent rainbow light, featuring a trendy color palette that's popular on art platforms. The artwork is a matte painting with animation-style lighting, showcasing depth of field, ultra detail, and high-quality rendering using Blender. The dragon design incorporates turbulent fluid and fractal patterns, with smokey, symmetrical elements in sharp focus. The atmosphere includes volumetric fog and studio lighting, enhanced with Unreal Engine 5 and Octane Render, utilizing ray tracing for realistic effects. The dragon has a soft, friendly style reminiscent of Disney, with the forest filling the scene in a rich visual narrative. Creative flourishes include gentle swirls of mist around the dragon and subtle reflections in its eyes, adding to the magical ambiance.