Dragon Is Dead is an action rogue-like game in which you have to defeat difficult enemies and bosses while trying to manage your health and healing potions. However, being a Roguelike, you have one life to get everything done.
In other words, death has severe consequences, though you end up keeping a few rewards for yourself. Here’s a summary of everything that happens when you die in this game.
Dragon Is Dead: What Happens When You Die?

While playing through Dragon Is Dead, you pick up several buffs, which include levels, Artifacts, health potions, weapons, and armor. But not everything from these survive death.
What Stays: Weapons (including weapons from defeating major bosses), armor & Red currency.
What Does Not Stay: Artifacts, health potions, gold, abilities & levels are lost when you die in the game.
Red Currency is used to buy equipment from a vendor at the location where you respawn after running into an untimely death. You are also able to upgrade your potions after you die, once you get access to the Alchemist in the same town. Gold, unfortunately, is also lost upon death, so do make it a point to spend wherever you can in the course of your run.
Gold is primarily used to buy food and Artifacts, which are crucial items for your run. However, you get a lot of it while exploring, so you won’t have to worry too much about losing it all after death.
While this type of gameplay might sound intimidating for new players, it is on par for those used to Roguelike games. This makes learning enemy movesets, their placements, map layout, and health potion management extremely vital. Each run is effectively an extended boss fight equivalent of other games: every time you die, you gain information about the enemies, their placements, weaknesses, movesets and so on, which in turn allows you to plan out your next run.
Make sure to prepare yourself well before starting a run, and you will soon find yourself defeating key bosses like the Tree Spirit Longmore in a single playthrough.