A chibi big-eyed dragon playfully nestled in a lush forest, surrounded by cascading iridescent rainbow light. The creature is captured with a trending color palette and matte painting style, evoking the whimsical charm of a Disney artsyle. The scene is lit with animation lighting, providing depth of field and ultra-detailing. Rendered using Blender, it features turbulent fluid and fractal-like textures, with smokey elements and symmetrical composition. The image benefits from vibrant and volumetric fog enhanced by studio lighting, leveraging tools like Unreal Engine 5, Octane Render, and raytracing for a stunning effect. Soft, rounded forms and enchanting expressions make the dragon appear endearing and magical, with small unique details distinguishing it, all while maintaining sharp focus and a sense of wonder.