The Wave Dragon is an offshore wave energy converter of the overtopping type. It consists of two wave reflectors focusing the incoming waves towards a ramp, a reservoir for collecting the overtopping water and a number of hydro turbines for converting the pressure head into power. In the period from 1998 to 2001 extensive wave tank testing on a scale model was carried at Aalborg University. Then, a 57!27 m wide and 237 tonnes heavy (incl. ballast) prototype of the Wave Dragon, placed in Nissum Bredning, Denmark, was grid connected in May 2003 as the world’s first offshore wave energy converter. The prototype is fully equipped with hydro turbines and automatic control systems, and is instrumented in order to monitor power production, wave climate, forces in mooring lines, stresses in the structure and movements of the Wave Dragon. In the period May 2003 to January 2005 an extensive measuring program has been carried out, establishing the background for optimal design of the structure and regulation of the power take off system. Planning for deployment of a 4 MW power production unit in the Atlantic by 2007 is in progress.