Kathleen Carroll of the "New York Daily News" gave the film three stars out of four, criticizing the score and the live-action footage, but praising the animation of the dragon and the performances, writing "Sean Marshall, as Pete, looks and acts natural on camera which makes him a refreshing change from those sweet little cherubs usually cast in Disney movies. Miss Reddy plays her role with crisp efficiency and fortunately receives strong support for the rest of the cast, particularly Dale, so slick and funny as the conniving medicine man he nearly upstages the cuddly dragon."