[ericthered]

I GM's one lycanthrope who spent the majority of her time in wolf form, pretending to be a dog. The animal couldn't speak, but could certainly understand everything that was being said and was played as a human in animal form, not as an animal. The player was very good about respecting the limitation of the form, and we had some fun moments. Occasionally she would transform back into human form and chew out the other players for not understanding what the wolf was trying to tell them.

Do dragons count as "talking animals"? If so I've run a number of NPC's as real characters who were talking animals.