With clone tool I filled the blanks on the expanded canvas.
step 3 of 5
With liquify tool I transformed the disk into flowers.
Then hue/saturation with colorize to alter the colour. Burn and dodge for highlights and shadows.
step 4 of 5
Free transform and liquify tools to transform dragon's head.
Hue/saturation with colorize. Brushes for the grass.
step 5 of 5
More transformation for head, body and wings. Liquify, burn, dodge and erase tools.
Added background and haze in new layers.