It's been so long since I've played this game.... She was one of the dragons, right? I don't remember this plot point, but the name sounds familiar.

yep. if you remember Dragon Shores at all, she and her husband live in those... circus tent looking things in the top-right part of the screen.

you later go out on those small islands to the right, to give her an invitation to a party one of the other dragons is having.

and then after you beat [the final boss] and the credits roll ......... it doesn't address where she is! when you go back to Mr. Funderlic, he just asks where she is again.

and she's nowhere to be found, as far as i can tell.

is she still wandering around somewhere, or...?

i do have one theory.