# EDGAR Filing Document

**Accession Number:** 0000919893
**File Stem:** 0001133228-26-002974
**Filing Date:** 2026-3
**Character Count:** 286764
**Document Hash:** 0a07a6a39adb5f5a4cf78ba0e7c7b6a1
**Contains OCR:** False
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## Filing Content

## Filing Summary
**0001133228-26-002974.hdr.sgml**: 20260304

**ACCESSION NUMBER**: 0001133228-26-002974

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260304

**DATE AS OF CHANGE**: 20260304

**EFFECTIVENESS DATE**: 20260304

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TEMPLETON DRAGON FUND INC
- **CENTRAL INDEX KEY:** 0000919893

**ORGANIZATION NAME:**
- **EIN:** 650473580
- **STATE OF INCORPORATION:** FL
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-08394
- **FILM NUMBER:** 26722283

**BUSINESS ADDRESS:**
- **STREET 1:** 300 S.E. 2ND STREET
- **CITY:** FORT LAUDERDALE
- **STATE:** FL
- **ZIP:** 33301-1923
- **BUSINESS PHONE:** 9545277500

**MAIL ADDRESS:**
- **STREET 1:** 300 S.E. 2ND STREET
- **CITY:** FORT LAUDERDALE
- **STATE:** FL
- **ZIP:** 33301-1923

?xml version='1.0' encoding='ASCII'?

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

**FORM N-CSR**

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number **811-08394**

**Templeton Dragon Fund, Inc.**

(Exact name of registrant as specified in charter)

**300 S.E. 2nd Street, Fort Lauderdale, FL 33301-1923**

(Address of principal executive offices) (Zip code)

Alison Baur

Franklin Templeton

One Franklin Parkway,

San Mateo, CA 94403-1906

(Name and address of agent for service)

Registrant's telephone number, including area code: (**954) 527-7500**

Date of fiscal year end: **December 31**

Date of reporting period: **December 31, 2025**

ITEM 1. REPORT TO STOCKHOLDERS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Report to Shareholders is filed herewith

#### Annual

#### Report

#### Templeton

#### Dragon

#### Fund,

#### Inc.
December

31,

2025

#### Not

#### FDIC

#### Insured

#### No

#### Bank

#### Guarantee

#### May

#### Lose

#### Value

#### Managed

#### Distribution

#### Policy
:

Effective

March

1,

2025,

the

Board

has

implemented

a

new

managed

distribution

plan

whereby

the

Fund

will

distribute

a

level

distribution

amount

to

shareholders.

The

Fund

intends

to

make

quarterly

distributions

to

shareholders

at

the

fixed

rate

of

$0.10

per

share.

Management

will

generally

distribute

amounts

necessary

to

satisfy

the

Fund's

plan

and

the

requirements

prescribed

by

excise

tax

rules

and

Subchapter

M

of

the

Internal

Revenue

Code.

The

plan

is

intended

to

provide

shareholders

with

a

consistent

distribution

each

quarter

and

is

intended

to

narrow

the

discount

between

the

market

price

and

the

NAV

of

the

Fund's

common

shares,

but

there

is

no

assurance

that

the

plan

will

be

successful

in

doing

so.

Under

the

managed

distribution

plan,

to

the

extent

that

sufficient

investment

income

is

not

available

on

a

quarterly

basis,

the

Fund

will

distribute

long-term

capital

gains

and/or

return

of

capital

in

order

to

maintain

its

managed

distribution

rate.

No

conclusions

should

be

drawn

about

the

Fund's

investment

performance

from

the

amount

of

the

Fund's

distributions

or

from

the

terms

of

the

Fund's

managed

distribution

plan.

The

Board

may

amend

the

terms

of

the

Plan

or

terminate

the

Plan

at

any

time

without

prior

notice

to

the

Fund's

shareholders,

however,

at

this

time

there

are

no

reasonably

foreseeable

circumstances

that

might

cause

the

termination

of

the

Plan.

The

amendment

or

termination

of

the

Plan

could

have

an

adverse

effect

on

the

market

price

of

the

Fund's

common

shares.

The

Plan

will

be

subject

to

the

periodic

review

by

the

Board,

including

a

yearly

review

of

the

annual

minimum

fixed

rate

to

determine

if

an

adjustment

should

be

made.

Shareholders

should

not

draw

any

conclusions

about

the

Fund's

investment

performance

from

the

amount

of

this

distribution

or

from

the

terms

of

the

Plan.

The

Fund

will

send

a

Form

1099-DIV

to

shareholders

for

the

calendar

year

that

will

describe

how

to

report

the

Fund's

distributions

for

federal

income

tax

purposes.

Please

see

the

"Important

Information

to

Shareholders"

section

for

additional

information.

franklintempleton.com

Annual

Report

Contents

Fund

Overview

Performance

Summary

Consolidated

Financial

Highlights

and

Consolidated

Schedule

of

Investments

Consolidated

Financial

Statements

Notes

to

Consolidated

Financial

Statements

Report

of

Independent

Registered

Public

Accounting

Firm

Tax

Information

Important

Information

to

Shareholders

Annual

Meeting

of

Shareholders

Dividend

Reinvestment

and

Cash

Purchase

Plan

Board

Members

and

Officers

Shareholder

Information

Visit

#### franklintempleton.com
for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

franklintempleton.com

Annual

Report

Templeton

Dragon

Fund,

Inc.

Dear

Shareholder,

This

annual

report

for

Templeton

Dragon

Fund,

Inc.

covers

the

fiscal

year

ended

December

31,

2025. Fund

Overview

Q. #### What

#### is

#### the

#### Fund's

#### investment

#### strategy?
A. The

Fund

seeks

long-term

capital

appreciation

by

investing

at

least

45%

of

its

total

assets

in

equity

securities

of

"China

companies."

Our

investment

strategy

employs

a

fundamental,

value-oriented,

long-term

approach.

In

selecting

companies

for

investment,

we

will

consider

overall

growth

prospects,

competitive

positions

in

export

markets,

technologies,

research

and

development,

productivity,

labor

costs,

and

raw

material

costs

and

sources.

Additional

considerations

include

profit

margins,

returns

on

investment,

capital

resources,

government

regulation,

management,

and

other

factors

in

comparison

to

other

companies

around

the

world

that

we

believe

are

comparable.

Our

approach

to

selecting

investments

emphasizes

fundamental,

company-by-company

analysis

(rather

than

broader

analyses

of

specific

industries

or

sectors

of

the

economy),

to

construct

an

"action

list"

from

which

we

make

our

buy

decisions.

Although

we

will

consider

historical

value

measures,

the

primary

factor

in

selecting

securities

for

investment

by

the

Fund

will

be

the

company's

current

price

relative

to

its

long-term

earnings

potential.

Q. #### What

#### were

#### the

#### overall

#### market

#### conditions

#### during

#### the

#### Fund's

#### reporting

#### period?
A. Chinese

equities

rose

in

2025. This

performance

was

supported

by

continued

stimulus

measures

from

China's

regulatory

authorities.

China

also

eased

monetary

policy,

including

reducing

its

benchmark

lending

rates.

Another

central

theme

for

the

outperformance

of

Chinese

equities

was

a

technology

rally.

The

China

government's

work

report

released

in

the

first

quarter

of

2025—which

focused

on

technology—was

viewed

as

signs

of

support

for

the

sector.

Artificial

intelligence

(AI)

product

rollouts

by

China's

technology

companies

fostered

confidence

in

these

companies'

AI-related

expenditure.

The

technology

rally

also

extended

to

semiconductor

firms

as

the

government

rehashed

its

intention

to

strengthen

the

domestic

semiconductor

industry,

gearing

towards

a

self-sufficiency

approach.

U.S.-China

tensions

were

inherent

throughout

the

year;

however,

the

year

ended

with

a

trade

truce

between

both

countries.

Q. #### How

#### did

#### we

#### respond

#### to

#### these

#### changing

#### market

#### conditions?
A. Our

investment

strategy

employs

a

bottom-up,

research-

driven

approach

focused

on

identifying

long-term

earnings

power

at

a

discount

to

intrinsic

value.

Our

opportunity

lies

in

identifying

companies

for

which

the

market

underestimates

or

misprices

the

probability,

magnitude,

or

timing

of

its

long-

term

earnings

power.

Sector

weightings

are

a

residual

of

our

bottom-up

stock

selection

process.

Due

to

China's

idiosyncrasies,

we

place

additional

emphasis

on

non-economic

factors

such

as

government

policy,

corporate

structure,

management

motivation,

social

and

demographic

trends,

and

local

government

interests.

We

believe

combining

our

bottom-up

approach

with

a

top-down

perspective

is

crucial.

Top-down

views

further

underpin

stock

research

focus

and

portfolio

construction,

which

remains

primarily

driven

by

bottom-up

selection.

Performance

Overview

For

the

months

under

review,

the

Fund

posted

cumulative

total

returns

of

+37.67%

in

market

price

terms

and

+29.67%

in

net

asset

value

terms.

In

comparison,

the

MSCI

China

All

Shares

Index-NR,

which

measures

the

performance

of

China

share

classes

listed

in

Hong

Kong,

Shanghai,

Shenzhen

and

outside

of

China,

posted

a

+28.94%

total

return

for

the

same

period.

You

can

find

the

Fund's

long-term

performance

data

in

the

Performance

Summary

on

page

5. The

Board

has

implemented

a

managed

distribution

plan

whereby

the

Fund

distributes

a

level

distribution

amount

to

shareholders.

The

Fund

intends

to

make

quarterly

distributions

to

shareholders

at

the

fixed

rate

of

$0.10

per

share.

Management

will

generally

distribute

amounts

necessary

to

satisfy

the

Fund's

plan

and

the

requirements

#### Geographic

#### Composition
12/31/25

#### %

#### of

#### Total

#### Net

#### Assets
China

93.1%

Hong

Kong

3.9%

Short-Term

Investments

&

Other

Net

Assets

3.0%

1. Source:

Morningstar.

The

index

is

unmanaged

and

includes

reinvestment

of

any

income

or

distributions.

It

does

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund's

portfolio.

Net

Return

(NR)

reflects

no

deduction

for

fees,

expenses

or

taxes

but

are

net

of

dividend

tax

withholding.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com.

#### The

#### dollar

#### value,

#### number

#### of

#### shares

#### or

#### principal

#### amount,

#### and

#### names

#### of

#### all

#### portfolio

#### holdings

#### are

#### listed

#### in

#### the

#### Fund's

#### Consolidated

#### Schedule

#### of

#### Investments

#### (SOI).

#### The

#### Consolidated

#### SOI

#### begins

#### on

#### page

#### 9

#### .
Templeton

Dragon

Fund,

Inc.

franklintempleton.com

Annual

Report

prescribed

by

excise

tax

rules

and

Subchapter

M

of

the

Internal

Revenue

Code.

The

plan

is

intended

to

provide

shareholders

with

a

consistent

distribution

each

quarter

and

is

intended

to

narrow

the

discount

between

the

market

price

and

the

NAV

of

the

Fund's

common

shares,

but

there

is

no

assurance

that

the

plan

will

be

successful

in

doing

so.

For

the

fiscal

year

ended

December

31,

2025,

the

Fund

estimates

that

it

distributed

more

than

its

income

and

net

realized

capital

gains;

therefore,

a

portion

of

the

Fund

distribution

to

shareholders

may

be

a

return

of

capital.

A

return

of

capital

may

occur,

for

example,

when

some

or

all

of

the

money

that

a

shareholder

invested

in

a

Fund

is

paid

back

to

them.

A

return

of

capital

distribution

does

not

necessarily

reflect

the

Fund's

investment

performance

and

should

not

be

confused

with

"yield"

or

"income".

The

Fund

sends

a

Form

1099-DIV

to

shareholders

each

calendar

year

describing

how

to

report

the

Fund's

distributions

for

federal

income

tax

purposes.

Please

see

the

"Important

Information

to

Shareholders"

section

for

additional

information.

*Performance* 

*data* 

*represent* 

*past* 

*performance,* 

*which* 

*does* 

*not* 

*guarantee* 

*future* 

*results.* 

*Investment* 

*return* 

*and* 

*principal* 

*value* 

*will* 

*fluctuate,* 

*and* 

*you* 

*may* 

*have* 

*a* 

*gain* 

*or* 

*loss* 

*when* 

*you* 

*sell* 

*your* 

*shares.* 

*Current* 

*performance* 

*may* 

*differ* 

*from* 

*figures* 

*shown.*

Q. #### What

#### were

#### the

#### leading

#### contributors

#### to

#### performance?
A. During

the

months

under

review,

key

contributors

to

the

Fund's

absolute

performance

included

Alibaba

Group,

Tencent

Holdings

and

Yantai

China

Pet

Foods.

Alibaba

Group

Holding

is

a

leading

e-commerce

and

cloud

service

company

in

China.

Its

share

price

performance

in

2025

was

driven

by

optimism

about

its

AI

and

cloud

initiatives

where

the

company

has

increased

its

investments

meaningfully.

This

was

partially

offset

by

increased

competition

and

investments

in

on-demand

services

which

has

had

a

significant

impact

on

near-term

profitability.

The

monetisation

of

its

large

AI

investments

and

improvement

in

profitability

for

its

commerce

business

should

be

the

key

drivers

for

the

earnings

ahead.

Tencent

Holdings

is

a

technology

company

engaged

in

the

provision

of

value-added

services

including

online

and

mobile

games,

cloud,

and

payment

services.

Its

second-quarter

results

were

a

solid

beat

across

the

board,

demonstrating

the

positive

impact

of

the

adoption

of

AI

in

existing

core

businesses.

Its

development

in

AI

gave

further

legs

to

the

share

price

rally.

We

continue

to

maintain

a

positive

view

on

the

company,

especially

as

it

embraces

the

adoption

of

latest

AI

technologies

in

its

core

businesses,

which

should

prolong

its

growth

runway.

Yantai

China

Pet

Foods

is

a

manufacturer

of

pet

food.

Its

share

price

benefited

from

stimulus

policies

to

boost

consumption

and

was

further

bolstered

by

a

large

year-

on-year

increase

in

net

profit

for

the

first

quarter

of

2025. This

was

followed

by

plans

to

distribute

cash

dividends.

The

company's

domestic

business

profitability,

in

our

view,

is

promising,

with

restructuring

efforts

starting

to

bear

fruit.

While

tariffs

remain

a

source

of

risk,

capacity

upgrades

in

North

America

may

be

helpful

in

reducing

this

risk

slightly.

Most

sectors

were

absolute

contributors;

however,

the

best

performers

on

an

absolute

level

were

consumer

discretionary,

financials

and

information

technology

(IT).

Q. #### What

#### were

#### the

#### leading

#### detractors

#### from

#### performance?
A. Key

detractors

from

the

Fund's

absolute

performance

for

the

reporting

period

included

Haier

Smart

Home,

Nari

Technology

and

Meituan.

Haier

Smart

Home

is

a

leading

global

home

appliance

company,

encompassing

brands

such

as

Haier,

Carsate,

GE

Appliances

and

Candy.

Its

share

price

registered

a

large

drop

in

the

first

quarter

of

2025

as

its

full-year

2024

net

income

missed

the

average

analyst

estimate.

While

earnings

results

for

more

recent

quarters

were

more

positive,

the

share

price

never

fully

recovered

from

the

initial

dip.

Nari

Technology

is

engaged

in

the

software

and

hardware

development

and

system

integration

for

power

system

energy

management

and

industrial

process

control

automation

in

China.

Its

share

price

jumped

in

November

#### Top

#### 10

#### Holdings
12/31/25

#### Company

#### Industry,

#### Country

#### %

#### of

#### Total

#### Net

#### Assets

#### a
Tencent

Holdings

Ltd.

11.2%

*Interactive* 

*Media* 

*&* 

*Services,* 

*China*

Alibaba

Group

Holding

Ltd.

8.8%

*Broadline* 

*Retail,* 

*China*

WUS

Printed

Circuit

Kunshan

Co.

Ltd.

4.3%

*Electronic* 

*Equipment,* 

*Instruments* 

*&* 

*Components,* 

*China*

Xiaomi

Corp.

3.4%

*Technology* 

*Hardware,* 

*Storage* 

*&* 

*Peripherals,* 

*China*

Ping

An

Insurance

Group

Co.

of

China

Ltd.

3.0%

*Insurance,* 

*China*

China

Merchants

Bank

Co.

Ltd.

2.7%

*Banks,* 

*China*

Harbin

Electric

Co.

Ltd.

2.5%

*Electrical* 

*Equipment,* 

*China*

CMOC

Group

Ltd.

2.4%

*Metals* 

*&* 

*Mining,* 

*China*

Midea

Group

Co.

Ltd.

2.4%

*Household* 

*Durables,* 

*China*

Sieyuan

Electric

Co.

Ltd.

2.2%

*Electrical* 

*Equipment,* 

*China*

Templeton

Dragon

Fund,

Inc.

franklintempleton.com

Annual

Report

2025

alongside

other

solar

stocks

on

optimism

on

earnings

improvement.

However,

this

resulted

in

a

bout

of

profit-

taking,

which

ultimately

sent

its

share

price

lower.

Nari's

expansion

into

non-grid

markets

such

as

renewable

energy

and

energy

storage

systems

could

be

supported

by

its

technologies

and

expertise

in

its

legacy

areas

of

power

automation

and

communication,

and

control

system

software

solutions.

Meituan

is

a

Chinese

technology

retail

company

that

operates

a

web-based

shopping

platform

for

local

consumer

products

and

retail

services,

with

a

focus

on

food

delivery.

Intensifying

competition

in

China's

food

delivery

space

accompanied

share

price

pressures

from

a

sector-wide

decline

due

to

geopolitical

tensions

between

China

and

the

U.S.

We

believe

that,

in

the

long

term,

Meituan's

business

will

not

be

majorly

impacted

given

its

status

as

a

dominant

player

and

other

growth

drivers

for

the

company.

However,

until

more

clarity

emerges

in

the

competitive

landscape,

we

believe

that

the

stock

price

may

experience

some

volatility

for

the

next

couple

of

quarters.

The

energy

and

real

estate

sectors

were

the

sole

detractors

from

absolute

performance.

Q. #### Were

#### there

#### any

#### significant

#### changes

#### to

#### the

#### Fund

#### during

#### the

#### reporting

#### period?
A. We

did

not

make

any

significant

changes

to

the

Fund's

investment

process

over

the

reporting

period.

In

the

past

months,

the

continued

search

for

undervalued

investments

led

to

additions

in

the

IT,

industrials

and

materials

sectors.

Meanwhile,

we

reduced

the

Fund's

investments

in

the

financials,

consumer

discretionary

and

energy

sectors

in

favor

of

opportunities

that

we

found

more

compelling.

Thank

you

for

your

continued

participation

in

Templeton

Dragon

Fund,

Inc.

We

look

forward

to

serving

your

future

investment

needs.

Sincerely,

Nicholas

Chui,

CFA

Lead

Portfolio

Manager

Eric

Mok,

CFA

Tony

Sun

Portfolio

Management

Team

*The* 

*foregoing* 

*information* 

*reflects* 

*our* 

*analysis,* 

*opinions* 

*and* 

*portfolio* 

*holdings* 

*as* 

*of* 

*December* 

*31,* 

*2025,* 

*the* 

*end* 

*of* 

*the* 

*reporting* 

*period.* 

*The* 

*way* 

*we* 

*implement* 

*our* 

*main* 

*investment* 

*strategies* 

*and* 

*the* 

*resulting* 

*portfolio* 

*holdings* 

*may* 

*change* 

*depending* 

*on* 

*factors* 

*such* 

*as* 

*market* 

*and* 

*economic* 

*conditions.* 

*These* 

*opinions* 

*may* 

*not* 

*be* 

*relied* 

*upon* 

*as* 

*investment* 

*advice* 

*or* 

*an* 

*offer* 

*for* 

*a* 

*particular* 

*security.* 

*The* 

*information* 

*is* 

*not* 

*a* 

*complete* 

*analysis* 

*of* 

*every* 

*aspect* 

*of* 

*any* 

*market,* 

*country,* 

*industry,* 

*security* 

*or* 

*the* 

*Fund.* 

*Statements* 

*of* 

*fact* 

*are* 

*from* 

*sources* 

*considered* 

*reliable,* 

*but* 

*the* 

*investment* 

*manager* 

*makes* 

*no* 

*representation* 

*or* 

*warranty* 

*as* 

*to* 

*their* 

*completeness* 

*or* 

*accuracy.* 

*Although* 

*historical* 

*performance* 

*is* 

*no* 

*guarantee* 

*of* 

*future* 

*results,* 

*these* 

*insights* 

*may* 

*help* 

*you* 

*understand* 

*our* 

*investment* 

*management* 

*philosophy.*

CFA®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

December

31,

2025

Templeton

Dragon

Fund,

Inc.

franklintempleton.com

Annual

Report

Total

return

reflects

reinvestment

of

the

Fund's

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Total

returns

do

not

reflect

any

sales

charges

paid

at

inception

or

brokerage

commissions

paid

on

secondary

market

purchases.

The

performance

tables

and

graph

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund's

portfolio,

adjusted

for

operating

expenses.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/25

*Performance* 

*data* 

*represent* 

*past* 

*performance,* 

*which* 

*does* 

*not* 

*guarantee* 

*future* 

*results.* 

*Investment* 

*return* 

*and* 

*principal* 

*value* 

*will* 

*fluctuate,* 

*and* 

*you* 

*may* 

*have* 

*a* 

*gain* 

*or* 

*loss* 

*when* 

*you* 

*sell* 

*your* 

*shares.* 

*Current* 

*performance* 

*may* 

*differ* 

*from* 

*figures* 

*shown.*

Share

Prices

#### Cumulative

#### Total

#### Return

#### 2

#### Average

#### Annual

#### Total

#### Return

#### 2

#### Based

#### on

#### NAV

#### 3

#### Based

#### on

#### market

#### price

#### 4

#### Based

#### on

#### NAV

#### 3

#### Based

#### on

#### market

#### price

#### 4
1-Year

+29.67%

+37.67%

+29.67%

+37.67%

5-Year

-32.03%

-36.09%

-7.43%

-8.56%

10-Year

+45.31%

+57.21%

+3.81%

+4.63%

#### Symbol:

#### TDF

#### 12/31/25

#### 12/31/24

#### Change
Net

Asset

Value

(NAV)

$13.02

$10.37

+$2.65

Market

Price

(NYSE)

$11.26

$8.49

+$2.77

Distributions

Per

Share

(1/1/25–12/31/25)

#### Net

#### Investment

#### Income

#### Tax

#### Return

#### of

#### Capital

#### Total
$0.2976

$0.1024

$0.4000

#### See

#### page

#### 7

#### for

#### Performance

#### Summary

#### footnotes.
Templeton

Dragon

Fund,

Inc.

Performance

Summary

franklintempleton.com

Annual

Report

#### See

#### page

#### 7

#### for

#### Performance

#### Summary

#### footnotes.
Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

index

includes

reinvestment

of

any

income

or

distributions.

It

differs

from

the

Fund

in

composition

and

does

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

12/31/15–12/31/25

Templeton

Dragon

Fund,

Inc.

Performance

Summary

franklintempleton.com

Annual

Report

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager's

investment

decisions

will

produce

the

desired

results.

#### All

#### investments

#### involve

#### risks,

#### including

#### possible

#### loss

#### of

#### principal.

#### International

#### investments
are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

#### emerging

#### markets
.

There

are

special

risks

associated

with

investments

in

#### China,

#### Hong

#### Kong

#### and

#### Taiwan
,

including

less

liquidity,

expropriation,

confiscatory

taxation,

international

trade

tensions,

nationalization,

and

exchange

control

regula-

tions

and

rapid

inflation,

all

of

which

can

negatively

impact

the

Fund.

Investments

in

Taiwan

and

Hong

Kong

could

be

adversely

affected

by

their

respective

political

and

economic

relationship

with

China.

To

the

extent

the

Fund

invests

in

companies

in

a

specific

#### country

#### or

#### region
,

the

Fund

may

experience

greater

volatility

than

a

Fund

that

is

more

broadly

diversified

geographically.

The

portfolio

is

#### non-diversified
and

may

invest

in

a

relatively

small

number

of

issuers,

which

may

negatively

impact

the

Fund's

performance

and

result

in

greater

fluctuation

in

the

value

of

the

Fund's

shares.

The

managers'

#### environmental

#### social

#### and

#### governance
(ESG)

#### strategies
may

limit

the

types

and

number

of

investments

available

and,

as

a

result,

may

forgo

favorable

market

opportunities

or

underperform

strategies

that

are

not

subject

to

such

criteria.

There

is

no

guarantee

that

the

strategy's

ESG

directives

will

be

successful

or

will

result

in

better

performance.

The

Fund

may

invest

in

eligible

China

A

shares

("Stock

Connect

Securities")

listed

and

traded

on

the

Shanghai

Stock

Exchange

through

the

Shanghai-Hong

Kong

Stock

Con-

nect

program,

as

well

as

eligible

China

A

shares

listed

and

traded

on

the

Shenzhen

Stock

Exchange

through

the

Shenzhen-Hong

Kong

Stock

Connect

program

(collectively,

"Stock

Connect")

and

may

invest

in

China

Interbank

bonds

traded

on

the

China

Interbank

Bond

Market

("CIBM")

through

the

China

–

Hong

Kong

Bond

Connect

program

("Bond

Connect").

Trading

through

Stock

Connect

is

subject

to

a

number

of

restrictions

that

may

affect

the

Fund's

investments

and

returns.

For

example,

investors

in

Stock

Connect

Securi-

ties

are

generally

subject

to

Chinese

securities

regulations

and

the

listing

rules

of

the

respective

Exchange,

among

other

restrictions.

In

addition,

Stock

Connect

Securities

generally

may

not

be

sold,

purchased

or

otherwise

transferred

other

than

through

Stock

Connect

in

accordance

with

applicable

rules.

While

Stock

Connect

is

not

subject

to

individual

investment

quotas,

daily

and

aggregate

investment

quotas

apply

to

all

Stock

Connect

participants,

which

may

restrict

or

preclude

the

Fund's

ability

to

invest

in

Stock

Connect

Securities.

Trading

in

the

Stock

Connect

program

is

subject

to

trading,

clearance

and

settlement

procedures,

which

could

pose

risks

to

the

Fund.

In

China,

the

Hong

Kong

Monetary

Authority

Central

Money

Markets

Unit

holds

Bond

Connect

securities

on

behalf

of

ultimate

investors

(such

as

the

Fund)

in

accounts

maintained

with

a

China-based

custodian

(either

the

China

Central

Depository

&

Clearing

Co.

or

the

Shanghai

Clearing

House).

This

recordkeeping

system

subjects

the

Fund

to

various

risks,

including

the

risk

that

the

Fund

may

have

a

limited

ability

to

enforce

rights

as

a

bondholder

and

the

risks

of

settlement

delays

and

counterparty

default

of

the

Hong

Kong

sub-custodian.

In

addition,

enforcing

the

ownership

rights

of

a

beneficial

holder

of

Bond

Connect

securities

is

untested

and

courts

in

China

have

limited

experience

in

apply-

ing

the

concept

of

beneficial

ownership.

Bond

Connect

uses

the

trading

infrastructure

of

both

Hong

Kong

and

China

and

is

not

available

on

trading

holidays

in

Hong

Kong.

As

a

result,

prices

of

securities

purchased

through

Bond

Connect

may

fluctuate

at

times

when

a

Fund

is

unable

to

add

to

or

exit

its

position.

Securities

offered

through

Bond

Connect

may

lose

their

eligibility

for

trading

through

the

program

at

any

time.

If

Bond

Connect

securities

lose

their

eligibility

for

trading

through

the

program,

they

may

be

sold

but

can

no

longer

be

purchased

through

Bond

Connect.

The

application

and

interpretation

of

the

laws

and

regulations

of

Hong

Kong

and

China,

and

the

rules,

policies

or

guidelines

published

or

applied

by

relevant

regulators

and

exchanges

in

respect

of

the

Stock

Connect

and

Bond

Connect

programs,

are

uncertain,

and

they

may

have

a

detrimental

effect

on

the

Fund's

investments

and

returns.

1. Gross

expenses

are

the

Fund's

total

annual

operating

expenses

as

of

the

Fund's

annual

report

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

voluntary

fee

waivers,

expense

caps

and/or

reimbursements.

Voluntary

waivers

may

be

modified

or

discontinued

at

any

time

without

notice.

2. Total

return

calculations

represent

the

cumulative

and

average

annual

changes

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

3. Assumes

reinvestment

of

distributions

based

on

net

asset

value.

4. Assumes

reinvestment

of

distributions

based

on

the

dividend

reinvestment

and

cash

purchase

plan.

5. Source:

FactSet.

The

MSCI

China

All

Shares

Index-NR

captures

large-

and

mid-cap

representation

across

China

A-shares,

B-shares,

H-shares,

Red

Chips,

P-Chips

and

foreign

listings

(e.g.,

ADRs).

The

index

aims

to

reflect

the

opportunity

set

of

China

share

classes

listed

in

Hong

Kong,

Shanghai,

Shenzhen

and

outside

of

China.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com.

Templeton

Dragon

Fund,

Inc.

Consolidated

Financial

Highlights

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

consolidated

financial

statements.

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$10.37

$9.42

$11.94

$18.70

$24.93

Income

from

investment

operations:

Net

investment

income

(loss)

a

....................

0.11 0.12 0.04 (0.05)

(0.16)

Net

realized

and

unrealized

gains

(losses)

...........

2.93 0.95 (2.57)

(5.41)

(3.67)

Total

from

investment

operations

....................

3.04 1.07 (2.53)

(5.46)

(3.83)

Less

distributions

from:

Net

investment

income

..........................

(0.30)

(0.12)

—

—

—

Net

realized

gains

.............................

—

—

—

(1.30)

(2.40)

Tax

return

of

capital

............................

(0.10)

—

—

—

—

Total

distributions

...............................

(0.40)

(0.12)

—

(1.30)

(2.40)

Repurchase

of

shares

............................

0.01 —

0.01 —

—

Net

asset

value,

end

of

year

.......................

$13.02

$10.37

$9.42

$11.94

$18.70

Market

value,

end

of

year

b

.........................

$11.26

$8.49

$8.17

$10.22

$17.00

Total

return

(based

on

net

asset

value

per

share)

c

.......

29.67%

11.48%

(21.11)%

(29.46)%

(15.52)%

Total

return

(based

on

market

value

per

share)

c

.........

37.67%

5.46%

(20.06)%

(32.99)%

(17.83)%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

before

waiver

and

payments

by

affiliates

......

1.22%

1.36%

1.28%

1.38%

1.37%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.21%

1.35%

1.27%

1.37%

1.37%

d

Net

investment

income

(loss)

......................

0.91%

1.26%

0.33%

(0.34)%

(0.70)%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$328,283

$262,882

$238,770

$403,707

$632,030

Portfolio

turnover

rate

............................

63.10%

38.79%

14.30%

3.26%

11.64%

a

Based

on

average

daily

shares

outstanding.

b

Based

on

the

last

sale

on

the

New

York

Stock

Exchange.

c

The

Market

Value

Total

Return

is

calculated

assuming

a

purchase

of

common

shares

on

the

opening

of

the

first

business

day

and

a

sale

on

the

closing

of

the

last

business

day

of

each

period.

Dividends

and

distributions

are

assumed

for

the

purposes

of

this

calculation

to

be

reinvested

at

prices

obtained

under

the

Fund's

Dividend

Reinvestment

and

Cash

Purchase

Plan.

Net

Asset

Value

Total

Return

is

calculated

on

the

same

basis,

except

that

the

Fund's

net

asset

value

is

used

on

the

purchase,

sale

and

dividend

reinvestment

dates

instead

of

market

value.

Total

return

does

not

reflect

brokerage

commissions

or

sales

charges

in

connection

with

the

purchase

or

sale

of

Fund

shares.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Templeton

Dragon

Fund,

Inc.

Consolidated

Schedule

of

Investments,

December

31,

2025

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

consolidated

financial

statements.

Annual

Report

a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Common

#### Stocks

#### 96.9%

#### Air

#### Freight

#### &

#### Logistics

#### 0.6%
a

SF

Holding

Co.

Ltd.

,

H

...............................

China

436,800

$

1,947,616

#### Automobile

#### Components

#### 2.6%
b

Fuyao

Glass

Industry

Group

Co.

Ltd.

,

A

...................

China

486,500

4,510,258

c

Hesai

Group

,

B

.....................................

China

174,020

3,982,283

8,492,541

#### Automobiles

#### 2.0%
b

BYD

Co.

Ltd.

,

A

.....................................

China

213,050

2,979,090

BYD

Co.

Ltd.

,

H

....................................

China

135,141

1,651,525

Geely

Automobile

Holdings

Ltd.

.........................

China

832,065

1,924,464

6,555,079

#### Banks

#### 5.7%
China

Construction

Bank

Corp.

,

H

.......................

China

6,603,544

6,536,261

b

China

Merchants

Bank

Co.

Ltd.

,

A

.......................

China

763,800

4,603,624

China

Merchants

Bank

Co.

Ltd.

,

H

.......................

China

622,570

4,235,280

Industrial

&

Commercial

Bank

of

China

Ltd.

,

H

..............

China

4,018,000

3,251,389

18,626,554

#### Beverages

#### 3.3%
b

Eastroc

Beverage

Group

Co.

Ltd.

,

A

.....................

China

65,000

2,488,049

b

Kweichow

Moutai

Co.

Ltd.

,

A

...........................

China

32,445

6,397,635

b

Wuliangye

Yibin

Co.

Ltd.

,

A

............................

China

121,588

1,843,863

10,729,547

#### Biotechnology

#### 2.1%
c,d

Innovent

Biologics,

Inc.

,

144A

,

Reg

S

....................

China

452,519

4,428,671

a,c

Nanjing

Leads

Biolabs

Co.

Ltd.

,

H

.......................

China

359,285

2,364,002

6,792,673

#### Broadline

#### Retail

#### 11.1%
e

Alibaba

Group

Holding

Ltd.

............................

China

1,580,652

29,022,292

e

JD.com,

Inc.

,

A

.....................................

China

88,493

1,272,462

c,e

PDD

Holdings,

Inc.

,

ADR

..............................

China

55,299

6,270,353

36,565,107

#### Capital

#### Markets

#### 0.3%
Hong

Kong

Exchanges

&

Clearing

Ltd.

...................

Hong

Kong

18,809

984,112

#### Chemicals

#### 1.5%
Guangzhou

Tinci

Materials

Technology

Co.

Ltd.

,

A

...........

China

381,100

2,527,832

Sunresin

New

Materials

Co.

Ltd.

,

A

......................

China

255,525

2,256,945

4,784,777

#### Communications

#### Equipment

#### 1.7%
Zhongji

Innolight

Co.

Ltd.

,

A

............................

China

65,500

5,691,083

#### Construction

#### Materials

#### 0.6%
a

West

China

Cement

Ltd.

..............................

China

5,000,000

1,995,629

#### Distributors

#### 1.7%
c

GigaCloud

Technology,

Inc.

,

A

..........................

China

143,886

5,651,842

#### Diversified

#### Consumer

#### Services

#### 1.6%
c,d,e

China

East

Education

Holdings

Ltd.

,

144A

,

Reg

S

...........

China

3,109,500

2,649,001

e

New

Oriental

Education

&

Technology

Group,

Inc.

...........

China

461,611

2,535,724

5,184,725

#### Electrical

#### Equipment

#### 8.6%
Contemporary

Amperex

Technology

Co.

Ltd.

,

A

.............

China

43,000

2,261,049

Templeton

Dragon

Fund,

Inc.

Consolidated

Schedule

of

Investments

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

consolidated

financial

statements.

a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Common

#### Stocks
(continued)

#### Electrical

#### Equipment
(continued)

b

Contemporary

Amperex

Technology

Co.

Ltd.

,

A

.

............

China

56,864

$

2,990,054

b,c

GoodWe

Technologies

Co.

Ltd.

,

A

.......................

China

103,125

916,583

Harbin

Electric

Co.

Ltd.

,

H

.............................

China

3,885,153

8,327,154

b

Hongfa

Technology

Co.

Ltd.

,

A

..........................

China

1,525,193

6,630,932

Sieyuan

Electric

Co.

Ltd.

,

A

............................

China

327,500

7,239,762

28,365,534

#### Electronic

#### Equipment,

#### Instruments

#### &

#### Components

#### 6.6%
Luxshare

Precision

Industry

Co.

Ltd.

,

A

...................

China

315,031

2,562,288

Wasion

Holdings

Ltd.

................................

Hong

Kong

2,238,000

4,940,908

WUS

Printed

Circuit

Kunshan

Co.

Ltd.

,

A

..................

China

1,346,340

14,005,393

21,508,589

#### Entertainment

#### 2.5%
e

NetEase,

Inc.

......................................

China

210,098

5,782,988

e

Tencent

Music

Entertainment

Group

,

ADR

.................

China

64,300

1,127,179

e

Tencent

Music

Entertainment

Group

,

A

...................

China

128,000

1,133,503

8,043,670

#### Food

#### Products

#### 2.7%
b

Inner

Mongolia

Yili

Industrial

Group

Co.

Ltd.

,

A

.............

China

463,800

1,899,491

Yantai

China

Pet

Foods

Co.

Ltd.

,

A

......................

China

100,000

740,288

b

Yantai

China

Pet

Foods

Co.

Ltd.

,

A

.

.....................

China

838,700

6,208,793

8,848,572

#### Ground

#### Transportation

#### 1.3%
e

Full

Truck

Alliance

Co.

Ltd.

,

ADR

........................

China

410,773

4,407,594

#### Health

#### Care

#### Equipment

#### &

#### Supplies

#### 0.5%
b

Shenzhen

New

Industries

Biomedical

Engineering

Co.

Ltd.

,

A

..

China

224,388

1,806,149

#### Hotels,

#### Restaurants

#### &

#### Leisure

#### 3.5%
c

Luckin

Coffee,

Inc.

,

ADR

..............................

China

148,868

4,987,078

e

Trip.com

Group

Ltd.

.................................

China

92,180

6,609,438

11,596,516

#### Household

#### Durables

#### 2.4%
b

Midea

Group

Co.

Ltd.

,

A

..............................

China

691,316

7,729,694

#### Insurance

#### 4.7%
PICC

Property

&

Casualty

Co.

Ltd.

,

H

....................

China

2,710,524

5,698,627

b

Ping

An

Insurance

Group

Co.

of

China

Ltd.

,

A

..............

China

258,400

2,531,309

Ping

An

Insurance

Group

Co.

of

China

Ltd.

,

H

..............

China

876,082

7,358,830

15,588,766

#### Interactive

#### Media

#### &

#### Services

#### 12.4%
e

JOYY,

Inc.

,

ADR

....................................

China

32,330

2,093,691

d,e

Kuaishou

Technology

,

144A

,

Reg

S

......................

China

221,097

1,827,679

e

Tencent

Holdings

Ltd.

................................

China

478,491

36,721,093

40,642,463

#### Media

#### 1.9%
Focus

Media

Information

Technology

Co.

Ltd.

,

A

............

China

3,290,300

3,470,254

b

Focus

Media

Information

Technology

Co.

Ltd.

,

A

.

...........

China

2,634,016

2,778,077

6,248,331

#### Metals

#### &

#### Mining

#### 5.2%
c

Chuangxin

Industries

Holdings

Ltd.

......................

China

881,000

2,345,500

CMOC

Group

Ltd.

,

H

.................................

China

3,177,386

7,894,287

Templeton

Dragon

Fund,

Inc.

Consolidated

Schedule

of

Investments

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

consolidated

financial

statements.

Annual

Report

a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Common

#### Stocks
(continued)

#### Metals

#### &

#### Mining
(continued)

c

Zijin

Gold

International

Co.

Ltd.

.........................

Hong

Kong

368,374

$

6,910,533

17,150,320

#### Oil,

#### Gas

#### &

#### Consumable

#### Fuels

#### 0.6%
CGN

Mining

Co.

Ltd.

.................................

China

4,600,000

1,822,698

#### Pharmaceuticals

#### 3.0%
c,d

Antengene

Corp.

Ltd.

,

144A

,

Reg

S

......................

China

1,900,000

926,458

b

Jiangsu

Hengrui

Pharmaceuticals

Co.

Ltd.

,

A

...............

China

608,627

5,191,971

c

Sichuan

Biokin

Pharmaceutical

Co.

Ltd.

,

A

.................

China

82,523

3,815,485

9,933,914

#### Real

#### Estate

#### Management

#### &

#### Development

#### 0.4%
a,e

KE

Holdings,

Inc.

,

ADR

...............................

China

86,022

1,355,707

#### Semiconductors

#### &

#### Semiconductor

#### Equipment

#### 1.2%
GigaDevice

Semiconductor,

Inc.

,

A

......................

China

127,800

3,914,446

#### Specialty

#### Retail

#### 1.2%
d,e

Pop

Mart

International

Group

Ltd.

,

144A

,

Reg

S

............

China

165,981

4,004,578

#### Technology

#### Hardware,

#### Storage

#### &

#### Peripherals

#### 3.4%
c,d,e

Xiaomi

Corp.

,

B

,

144A

,

Reg

S

..........................

China

2,223,611

11,222,193

#### Total

#### Common

#### Stocks

#### (Cost

#### $

#### 220,674,888

####)
...................................

#### 318,191,019

#### Escrows

#### and

#### Litigation

#### Trusts

#### 0.1%
b,c,f

Kangmei

Pharmaceutical

Co.

Ltd.,

Escrow

Account

..........

China

592,998

84,858

#### Total

#### Escrows

#### and

#### Litigation

#### Trusts

#### (Cost

#### $

#### –

####)
.................................

#### 84,858

#### Total

#### Long

#### Term

#### Investments

#### (Cost

#### $

#### 220,674,888

####)
.............................

#### 318,275,877

#### a

#### Short

#### Term

#### Investments

#### 1.2%
a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Money

#### Market

#### Funds

#### 0.9%
g,h

Franklin

Institutional

U.S.

Government

Money

Market

Fund

,

3.681 %

.........................................

United

States

2,841,466

2,841,466

#### Total

#### Money

#### Market

#### Funds

#### (Cost

#### $

#### 2,841,466

####)
.................................

#### 2,841,466
Templeton

Dragon

Fund,

Inc.

Consolidated

Schedule

of

Investments

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

consolidated

financial

statements.

#### Short

#### Term

#### Investments
(continued)

a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

i

#### Investments

#### from

#### Cash

#### Collateral

#### Received

#### for

#### Loaned

#### Securities

#### 0.3%

#### Money

#### Market

#### Funds

#### 0.3%
g,h

Franklin

Institutional

U.S.

Government

Money

Market

Fund

,

3.681 %

.........................................

United

States

1,003,848

$

1,003,848

#### Total

#### Investments

#### from

#### Cash

#### Collateral

#### Received

#### for

#### Loaned

#### Securities

#### (Cost

#### $

#### 1,003,848

####)
..........................................................

#### 1,003,848

#### Total

#### Short

#### Term

#### Investments

#### (Cost

#### $

#### 3,845,314

####)
...............................

#### 3,845,314

#### a

#### Total

#### Investments

#### (Cost

#### $

#### 224,520,202

####)
98.2 #### %
.................................

#### $322,121,191

#### Other

#### Assets,

#### less

#### Liabilities
1.8 #### %
...........................................

#### 6,161,881

#### Net

#### Assets

#### 100.0%

#### .........................................................

#### $328,283,072

#### a
See

Abbreviations

on

page

24. a

A

portion

or

all

of

the

security

is

on

loan

at

December

31,

2025. See

Note

(d).

b

The

security

is

owned

by

Templeton

China

Opportunities

Fund,

Ltd.,

a

wholly-owned

subsidiary

of

the

Fund.

See

Note

1(c).

c

Non-income

producing.

d

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933. 144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933. Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

December

31,

2025,

the

aggregate

value

of

these

securities

was

$25,058,580,

representing

7.6%

of

net

assets.

e

Variable

interest

entity

(VIE).

See

Note

regarding

investments

made

through

a

VIE

structure.

At

December

31,

2025,

the

aggregate

value

of

these

securities

was

$118,035,475,

representing

36.0%

of

net

assets.

f

Fair

valued

using

significant

unobservable

inputs.

See

Note

regarding

fair

value

measurements.

g

See

Note

(c)

regarding

investments

in

affiliated

management

investment

companies.

h

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

i

See

Note

(d)

regarding

securities

on

loan.

Templeton

Dragon

Fund,

Inc.

Consolidated

Financial

Statements

Consolidated

Statement

of

Assets

and

Liabilities

December

31,

2025

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

consolidated

financial

statements.

Annual

Report

#### Templeton

#### Dragon

#### Fund,

#### Inc.
Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$220,674,888

Cost

-

Non-controlled

affiliates

(Note

c)

........................................................

3,845,314

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$

2,961,318)

..................................

$318,275,877

Value

-

Non-controlled

affiliates

(Note

c)

.......................................................

3,845,314

Cash

....................................................................................

12,548

Foreign

currency,

at

value

(cost

$

307,189)

........................................................

310,167

Receivables:

Investment

securities

sold

...................................................................

7,133,683

Dividends

...............................................................................

219,538

Total

assets

..........................................................................

329,797,127

Liabilities:

Payables:

Capital

shares

redeemed

...................................................................

21,403

Management

fees

.........................................................................

288,364

Professional

fees

.........................................................................

131,438

Directors'

fees

and

expenses

................................................................

Payable

upon

return

of

securities

loaned

(Note

d)

..................................................

1,003,848

Accrued

expenses

and

other

liabilities

...........................................................

68,772

Total

liabilities

.........................................................................

1,514,055

Net

assets,

at

value

.................................................................

$328,283,072

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$279,007,757

Total

distributable

earnings

(losses)

.............................................................

49,275,315

Net

assets,

at

value

.................................................................

$328,283,072

Shares

outstanding

.........................................................................

25,216,108

Net

asset

value

per

share

a

....................................................................

$13.02

a

Net

asset

value

per

share

may

not

recalculate

due

to

rounding.

Templeton

Dragon

Fund,

Inc.

Consolidated

Financial

Statements

Consolidated

Statement

of

Operations

for

the

year

ended

December

31,

2025

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

consolidated

financial

statements.

#### Templeton

#### Dragon

#### Fund,

#### Inc.
Investment

income:

Dividends:

(net

of

foreign

taxes

of

$506,284)

Unaffiliated

issuers

........................................................................

$6,101,925

Non-controlled

affiliates

(Note

c)

.............................................................

263,778

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

549

Non-controlled

affiliates

(Note

c)

.............................................................

38,633

Total

investment

income

...................................................................

6,404,885

Expenses:

Management

fees

(Note

a)

...................................................................

3,190,813

Transfer

agent

fees

.........................................................................

56,851

Custodian

fees

............................................................................

71,718

Reports

to

shareholders

fees

..................................................................

39,031

Registration

and

filing

fees

....................................................................

12,993

Professional

fees

...........................................................................

241,788

Directors'

fees

and

expenses

..................................................................

38,662

Other

....................................................................................

22,267

Total

expenses

.........................................................................

3,674,123

Expenses

waived/paid

by

affiliates

(Note

c)

...................................................

(19,634)

Net

expenses

.........................................................................

3,654,489

Net

investment

income

................................................................

2,750,396

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

29,662,444

Foreign

currency

transactions

................................................................

(4,313)

Net

realized

gain

(loss)

..................................................................

29,658,131

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

44,462,061

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

15,926

Net

change

in

unrealized

appreciation

(depreciation)

............................................

44,477,987

Net

realized

and

unrealized

gain

(loss)

............................................................

74,136,118

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$76,886,514

Templeton

Dragon

Fund,

Inc.

Consolidated

Financial

Statements

Consolidated

Statements

of

Changes

in

Net

Assets

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

consolidated

financial

statements.

Annual

Report

#### Templeton

#### Dragon

#### Fund,

#### Inc.

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### Year

#### Ended

#### December

#### 31,

#### 2024
Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$2,750,396

$3,089,785

Net

realized

gain

(loss)

.................................................

29,658,131

(22,201,132)

Net

change

in

unrealized

appreciation

(depreciation)

...........................

44,477,987

46,151,443

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

76,886,514

27,040,096

Distributions

to

shareholders

..............................................

(7,523,675)

(2,928,284)

Distributions

to

shareholders

from

tax

return

of

capital

...........................

(2,589,568)

—

Total

distributions

to

shareholders

..........................................

(10,113,243)

(2,928,284)

Capital

share

transactions

from

-

repurchase

of

shares

(Note

2)

....................

(1,371,783)

—

Net

increase

(decrease)

in

net

assets

...................................

65,401,488

24,111,812

Net

assets:

Beginning

of

year

.......................................................

262,881,584

238,769,772

End

of

year

...........................................................

$328,283,072

$262,881,584

Templeton

Dragon

Fund,

Inc.

Notes

to

Consolidated

Financial

Statements

franklintempleton.com

Annual

Report

1. #### Organization

#### and

#### Significant

#### Accounting

#### Policies
Templeton

Dragon

Fund,

Inc. (Fund)

is

registered under

the

Investment

Company

Act

of

1940

(1940

Act)

as

a

closed-end

management

investment

company.

The

Fund

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946. The

following

summarizes

the Fund's

significant

accounting

policies.

a. #### Financial

#### Instrument

#### Valuation
The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the Fund's

Board

of

Directors

(the

Board),

the

Board

has

designated

the

Fund's

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Fund's

administrator

in

performing

this

responsibility,

including

leading

the

cross-

functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value.

Equity

securities

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities.

Investments

in open-end mutual

funds

are

valued

at

the

closing

NAV.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund's

business

day. Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund's

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

p.m.

Eastern

time. In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund's

portfolio

securities

to

the

latest

indications

of

fair

value

at

p.m.

Eastern

time.

At

December

31,

2025,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

within

the

fair

value

hierarchy

(referred

to

as

"market

level

fair

value").

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund's

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund's

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

Templeton

Dragon

Fund,

Inc.

Notes

to

Consolidated

Financial

Statements

franklintempleton.com

Annual

Report

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Fund

for

financial

reporting

purposes.

b. #### Foreign

#### Currency

#### Translation
Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Consolidated

Statement of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c. #### Investments

#### in

#### Templeton

#### China

#### Opportunities

#### Fund,

#### Ltd.

#### (China

#### Fund)
The

Fund

invests

in

certain

China

A-shares

through

its

investment

in

the

China

Fund.

The

China

Fund

is

a

Cayman

Islands

exempted

company,

and

is

a

wholly-

owned

subsidiary

of

the

Templeton

Dragon

Fund,

and

is

able

to

invest

directly

in

China

A-shares

consistent

with

the

investment

objective

of

the

Templeton

Dragon

Fund.

At

December

31,

2025,

the

China

Fund's

investments

as

well

as

any

other

assets

and

liabilities

of

the

China

Fund

are

reflected

in

the

Fund's

Consolidated Schedule

of

Investments

and

Consolidated

Statement of

Assets

and

Liabilities.

All

intercompany

transactions

and

balances

have

been

eliminated.

At

December

31,

2025,

the

net

assets

of

the

China

Fund

were

$61,870,424,

representing 18.8%

of

the

Fund's

consolidated

net

assets.

The

China

Fund

gains

access

to

the

A-shares

market

through

Templeton

Investment

Counsel,

LLC

(TIC),

which

serves

as

the

registered

Qualified

Foreign

Institutional

Investor

(QFII)

for

the

China

Fund.

Investment

decisions

related

to

the

China

Fund

A-shares

are

specific

to

the

Fund

and

it

bears

the

resultant

economic

and

tax

consequences

of

its

holdings

and

transactions

in

A-shares.

The

China

Fund

is

subject

to

certain

restrictions

and

administrative

processes

relating

to

its

ability

to

repatriate

cash

balances,

investment

proceeds,

and

earnings

associated

with

its

A-shares

and

may

incur

substantial

delays

in

gaining

access

to

its

assets

or

a

loss

of

value

in

the

event

of

noncompliance

with

applicable

Chinese

rules

or

requirements.

d. #### Securities

#### Lending
The

Fund

participates

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the

Fund.

Additionally,

at

December

31,

2025,

the

Fund

held

$2,100,960

in

U.S.

Government

and

Agency

securities

as

collateral.

These

securities

are

held

as

1. #### Organization

#### and

#### Significant

#### Accounting

#### Policies
(continued)

a. #### Financial

#### Instrument

#### Valuation
(continued)

Templeton

Dragon

Fund,

Inc.

Notes

to

Consolidated

Financial

Statements

franklintempleton.com

Annual

Report

collateral

in

segregated

accounts

with

the

Fund's

custodian.

The

Fund

cannot

repledge

or

resell

these

securities

held

as

collateral.

As

such,

the

non-cash

collateral

is

excluded

from

the

Consolidated

Statement

of

Assets

and

Liabilities. The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/or

third-party

vendor,

is

reported

separately

in

the Consolidated

Statement of

Operations.

The

Fund

bears

the

market

risk

with

respect

to

any

cash

collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

Securities

on

loan

outstanding

at

period

end,

if

any,

are

listed

in

the

Fund's

Consolidated

Schedule

of

Investments.

e. #### Income

#### and

#### Deferred

#### Taxes
It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and

excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

The Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

December

31,

2025, the Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

The

Fund's

federal

and

state

income

and

federal

excise

tax

returns

for

the

prior

three

fiscal

years

are

subject

to

examination

by

the

Internal

Revenue

Service

and

state

departments

of

revenue.

f. #### Security

#### Transactions,

#### Investment

#### Income,

#### Expenses

#### and

#### Distributions
Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

(including

interest

income

from

payment-in-kind

securities,

if

any)

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date. Effective

March

1,

2025,

the

Board

has

implemented

a

new

managed

distribution

plan

where

the

Fund

will

distribute

a

level

distribution

amount

to

shareholders.

The

Fund

intends

to

distribute

$0.10

per

share

quarterly.

The

Fund's

distribution

level

may

be

changed

by

the

Board

in

the

future.

Under

the

policy,

the

Fund

is

managed

with

a

goal

of

generating

as

much

of

the

distribution

as

possible

from

net

investment

income

and

short-term

capital

gains.

The

balance

of

the

distribution

will

then

come

from

long-term

capital

gains

to

the

extent

permitted

and,

if

necessary,

a

return

of

capital.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

g. #### Accounting

#### Estimates
The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

1. #### Organization

#### and

#### Significant

#### Accounting

#### Policies
(continued)

d. #### Securities

#### Lending
(continued)

Templeton

Dragon

Fund,

Inc.

Notes

to

Consolidated

Financial

Statements

franklintempleton.com

Annual

Report

h. #### Guarantees

#### and

#### Indemnifications
Under

the Fund's

organizational

documents,

its

officers

and directors

are

indemnified

by

the

Fund against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Fund.

Additionally,

in

the

normal

course

of

business,

the

Fund

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The Fund's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the Fund

that

have

not

yet

occurred.

Currently,

the Fund

expects

the

risk

of

loss

to

be

remote.

2. #### Capital

#### Stock
At

December

31,

2025,

there

were

million

shares

authorized

($0.01

par

value).

During

the years

ended

December

31,

2025 and

December

31,

2024,

there

were

no

shares

issued;

all

reinvested

distributions

were

satisfied

with

previously

issued

shares

purchased

in

the

open

market.

Under

the

Board

approved

open-market

share

repurchase

program,

the

Fund

may

purchase,

from

time

to

time,

Fund

shares

in

open-market

transactions,

at

the

discretion

of

management.

Transactions

in

the

Fund's

shares

were

as

follows:

3. #### Transactions

#### with

#### Affiliates
Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and directors

of

the Fund are

also

officers

and/or directors

of

the

following

subsidiaries:

a. #### Management

#### Fees
Effective March

1,

2025,

the

Fund

pays

an

investment

management

fee,

calculated weekly

and

paid

monthly,

to TAML

based

on

the

average weekly

net

assets of

the

Fund

as

follows:

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### Year

#### Ended

#### December

#### 31,

#### 2024

#### Shares

#### Amount

#### Shares

#### Amount
Shares

repurchased

.............................................

137,000

$1,371,783

–

$–

Weighted

average

discount

of

cost

of

repurchase

to

net

asset

value

of

shares

repurchased

.................................................

14.64%

–%

#### Subsidiary

#### Affiliation
Templeton

Asset

Management

Ltd.

(TAML)

Investment

manager

Templeton

Investment

Counsel,

LLC

(TIC)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

#### Annualized

#### Fee

#### Rate

#### Net

#### Assets
1.050%

Up

to

and

including

$1

billion

1.000%

Over

$1

billion,

up

to

and

including

$2

billion

0.950%

In

excess

of

$2

billion

1. #### Organization

#### and

#### Significant

#### Accounting

#### Policies
(continued)

Templeton

Dragon

Fund,

Inc.

Notes

to

Consolidated

Financial

Statements

franklintempleton.com

Annual

Report

Prior

to March

1,

2025,

the

Fund

paid

fees,

calculated daily and

paid

weekly,

to TAML

based

on

the

average weekly

net

assets

of

the

Fund

as

follows:

For

the

year

ended

December

31,

2025,

the

gross

effective

investment

management

fee

rate

was 1.057%

of

the

Fund's

average weekly

net

assets.

Under

an

agreement

with

TAML,

TIC

is

paid

a

fee

for

serving

as

the

QFII

for

the

China

Fund.

The

fee

is

paid

by

TAML

and

is

not

an

additional

expense

of

the

Fund.

b. #### Administrative

#### Fees
Under

an

agreement

with

TAML,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

TAML

based

on

the

Fund's

average weekly

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c. #### Investments

#### in

#### Affiliated

#### Management

#### Investment

#### Companies
The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

"Controlled

Affiliate"

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund's

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Consolidated

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees,

if

applicable, paid

directly

or

indirectly

by

each

affiliate.

During

the

year

ended

December

31,

2025,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

#### Annualized

#### Fee

#### Rate

#### Net

#### Assets
1.100%

Up

to

and

including

$1

billion

1.050%

Over

$1

billion,

up

to

and

including

$2

billion

1.000%

In

excess

of

$2

billion

#### &nbsp;&nbsp;&nbsp;&nbsp;aa

#### Value

#### at

#### Beginning

#### of

#### Year

#### Purchases

#### Sales

#### Realized

#### Gain
(Loss)

#### Net

#### Change

#### in

#### Unrealized

#### Appreciation
(Depreciation)

#### Value

#### at

#### End

#### of

#### Year

#### Number

#### of

#### Shares

#### Held

#### at

#### End

#### of

#### Year

#### Investment

#### Income

#### a&nbsp;&nbsp;&nbsp;&nbsp;

#### a

#### Templeton

#### Dragon

#### Fund,

#### Inc.

#### Non-Controlled

#### Affiliates
Dividends

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.681%

............

$12,194,527

$134,585,079

$(143,938,140)

$—

$—

$2,841,466

2,841,466

$263,778

#### Non-Controlled

#### Affiliates
Income

from

securities

loaned

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.681%

............

$890,660

$28,117,683

$(28,004,495)

$—

$—

$1,003,848

1,003,848

$38,633

#### Total

#### Affiliated

#### Securities

#### ...
$13,085,187

$162,702,762

$(171,942,635)

$—

$—

$3,845,314

$302,411

3. #### Transactions

#### with

#### Affiliates
(continued)

a. #### Management

#### Fees
(continued)

Templeton

Dragon

Fund,

Inc.

Notes

to

Consolidated

Financial

Statements

franklintempleton.com

Annual

Report

4. #### Income

#### Taxes
For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

December

31,

2025,

the

capital

loss

carryforwards

were

as

follows:

During

the

year

ended

December

31,

2025,

the

Fund

utilized

$29,834,214

of

capital

loss

carryforwards.

For

tax

purposes,

the

Fund

may

elect

to

defer

any

portion

of

a

post-October

capital

loss

or

late-year

ordinary

loss

to

the

first

day

of

the

following

fiscal

year.

At

December

31,

2025,

the

Fund

deferred

late-year

ordinary

losses

of

$488,971.

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2025

and

2024,

was

as

follows:

At

December

31,

2025,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

wash

sales,

passive

foreign

investment

company

shares,

pass-through

entity

income,

investments

in

the

China

Fund

and

corporate

actions.

5. #### Investment

#### Transactions
Purchases

and

sales

of

investments (excluding

short

term

securities) for

the

year

ended

December

31,

2025,

aggregated

$185,668,937 and

$194,414,597,

respectively.

At

December

31,

2025,

in

connection

with

securities

lending

transactions,

the

Fund

loaned

equity

investments

and

received

$1,003,848

of

cash

collateral.

The

gross

amount

of

recognized

liability

for

such

transactions

is

included

in

payable

upon

return

of

securities

loaned

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

The

agreements

can

be

terminated

at

any

time.

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$

8,160,434

Long

term

................................................................................

39,453,765

Total

capital

loss

carryforwards

...............................................................

$47,614,199

#### 2025

#### 2024
Distributions

paid

from:

Ordinary

income

..........................................................

$7,523,675

$2,928,284

Return

of

capital

...........................................................

2,589,568

—

$10,113,243

$2,928,284

Cost

of

investments

..........................................................................

$225,230,948

Unrealized

appreciation

........................................................................

$109,596,995

Unrealized

depreciation

........................................................................

(12,706,752)

Net

unrealized

appreciation

(depreciation)

..........................................................

$96,890,243

Templeton

Dragon

Fund,

Inc.

Notes

to

Consolidated

Financial

Statements

franklintempleton.com

Annual

Report

6. #### Concentration

#### of

#### Risk
Investing

in

foreign

securities

may

include

certain

risks

and

considerations

not

typically

associated

with

investing

in

U.S.

securities,

such

as

fluctuating

currency

values

and

changing

local,

regional

and

global

economic,

political

and

social

conditions,

which

may

result

in

greater

market

volatility.

Political

and

financial

uncertainty

in

many

foreign

regions

may

increase

market

volatility

and

the

economic

risk

of

investing

in

foreign

securities.

In

addition,

certain

foreign

securities

may

not

be

as

liquid

as

U.S.

securities.

Investing

in

China

A

shares

may

include

certain

risks

and

considerations

not

typically

associated

with

investing

in

U.S.

securities.

In

general,

A

shares

are

issued

by

companies

incorporated

in

the People's

Republic

of

China

(PRC)

and

listed

on

the

Shanghai

and

Shenzhen

Stock

Exchanges

and

available

for

investment

by

domestic

(Chinese)

investors

and

holders

of

a QFII

license

and,

in

the

case

of

certain

eligible

A

shares,

through

the

Shanghai

and

Shenzhen

Stock

Connect

programs.

The

Shanghai

and

Shenzhen

Stock

Exchanges

are,

however,

substantially

smaller,

less

liquid

and

more

volatile

than

the

major

securities

markets

in

the

United

States.

Certain

investments

in

Chinese

companies

are

made

through

a

special

structure

known

as

a

VIE.

In

a

VIE

structure,

foreign

investors,

such

as

the

Fund,

will

only

own

stock

in

a

shell

company

rather

than

directly

in

the

VIE,

which

must

be

owned

by

Chinese

nationals

(and/or

Chinese

companies)

to

obtain

the

licenses

and/or

assets

required

to

operate

in

a

restricted

or

prohibited

sector

in

China.

The

value

of

the

shell

company

is

derived

from

its

ability

to

consolidate

the

VIE

into

its

financials

pursuant

to

contractual

arrangements

that

allow

the

shell

company

to

exert

a

degree

of

control

over,

and

obtain

economic

benefits

arising

from,

the

VIE

without

formal

legal

ownership.

While

VIEs

are

a

longstanding

industry

practice

and

are

well

known

by

Chinese

officials

and

regulators,

the

structure

historically

has

not

been

formally

recognized

under

Chinese

law

and

it

is

uncertain

whether

Chinese

officials

or

regulators

will

withdraw

their

implicit

acceptance

of

the

structure.

It

is

also

uncertain

whether

the

contractual

arrangements,

which

may

be

subject

to

conflicts

of

interest

between

the

legal

owners

of

the

VIE

and

foreign

investors,

would

be

enforced

by

Chinese

courts

or

arbitration

bodies.

Prohibitions

of

these

structures

by

the

Chinese

government,

or

the

inability

to

enforce

such

contracts,

from

which

the

shell

company

derives

its

value,

would

likely

cause

the

VIE-structured

holding(s)

to

suffer

significant,

detrimental,

and

possibly

permanent

losses,

and

in

turn,

adversely

affect

the

Fund's

returns

and

net

asset

value.

7. #### Fair

#### Value

#### Measurements
The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

Templeton

Dragon

Fund,

Inc.

Notes

to

Consolidated

Financial

Statements

franklintempleton.com

Annual

Report

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

December

31,

2025,

in

valuing

the

Fund's assets carried

at

fair

value,

is

as

follows:

A

reconciliation

in

which

Level

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the year.

#### Level

#### 1

#### Level

#### 2

#### Level

#### 3

#### Total

#### Templeton

#### Dragon

#### Fund,

#### Inc.

#### Assets:
Investments

in

Securities:

a

Common

Stocks

:

Air

Freight

&

Logistics

...................

$

—

$

1,947,616

$

—

$

1,947,616

Automobile

Components

.................

—

8,492,541

—

8,492,541

Automobiles

..........................

—

6,555,079

—

6,555,079

Banks

...............................

—

18,626,554

—

18,626,554

Beverages

...........................

—

10,729,547

—

10,729,547

Biotechnology

.........................

—

6,792,673

—

6,792,673

Broadline

Retail

.......................

6,270,353

30,294,754

—

36,565,107

Capital

Markets

........................

—

984,112

—

984,112

Chemicals

...........................

—

4,784,777

—

4,784,777

Communications

Equipment

..............

—

5,691,083

—

5,691,083

Construction

Materials

..................

—

1,995,629

—

1,995,629

Distributors

...........................

5,651,842

—

—

5,651,842

Diversified

Consumer

Services

............

—

5,184,725

—

5,184,725

Electrical

Equipment

....................

—

28,365,534

—

28,365,534

Electronic

Equipment,

Instruments

&

Components

........................

—

21,508,589

—

21,508,589

Entertainment

.........................

1,127,179

6,916,491

—

8,043,670

Food

Products

........................

—

8,848,572

—

8,848,572

Ground

Transportation

..................

4,407,594

—

—

4,407,594

Health

Care

Equipment

&

Supplies

.........

—

1,806,149

—

1,806,149

Hotels,

Restaurants

&

Leisure

.............

4,987,078

6,609,438

—

11,596,516

Household

Durables

....................

—

7,729,694

—

7,729,694

Insurance

............................

—

15,588,766

—

15,588,766

Interactive

Media

&

Services

..............

2,093,691

38,548,772

—

40,642,463

Media

...............................

—

6,248,331

—

6,248,331

Metals

&

Mining

.......................

9,256,033

7,894,287

—

17,150,320

Oil,

Gas

&

Consumable

Fuels

.............

—

1,822,698

—

1,822,698

Pharmaceuticals

.......................

3,815,485

6,118,429

—

9,933,914

Real

Estate

Management

&

Development

....

1,355,707

—

—

1,355,707

Semiconductors

&

Semiconductor

Equipment

.

—

3,914,446

—

3,914,446

Specialty

Retail

........................

—

4,004,578

—

4,004,578

Technology

Hardware,

Storage

&

Peripherals

.

—

11,222,193

—

11,222,193

Escrows

and

Litigation

Trusts

...............

—

—

84,858

84,858

Short

Term

Investments

...................

3,845,314

—

—

3,845,314

Total

Investments

in

Securities

...........

$42,810,276

$279,226,057

b

$84,858

$322,121,191

a

For

detailed

categories,

see

the

accompanying

Schedule

of

Investments.

b

Includes

foreign

securities

valued

at

$279,226,057,

which

were

categorized

as

Level

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

7. #### Fair

#### Value

#### Measurements
(continued)

Templeton

Dragon

Fund,

Inc.

Notes

to

Consolidated

Financial

Statements

franklintempleton.com

Annual

Report

8. #### Operating

#### Segments
The Fund operates

as

a

single

operating

segment,

which

is

an

investment

portfolio.

The

chief

investment

officer

of

the

Fund's

Investment

manager serves

as

the

Chief

Operating

Decision

Maker

("CODM")

and

is

responsible

for

evaluating

the

Fund's

operating

results

and

allocating

resources

in

accordance

with

the

Fund's

investment

strategy.

Internal

reporting

provided

to

the

CODM

aligns

with

the

accounting

policies

and

measurement

principles

used

in

the consolidated

financial

statements.

For

information

regarding

segment

assets,

segment

profit

or

loss,

and

significant

expenses,

refer

to

the Consolidated

Statement

of

Assets

and

Liabilities

and

the Consolidated

Statement

of

Operations,

along

with

the

related

notes

to

the consolidated

financial

statements.

The Consolidated

Schedule

of

Investments

provides

details

of

the Fund's investments

that

generate

returns

such

as

interest,

dividends,

and

realized

and

unrealized

gains

or

losses.

Performance

metrics,

including

portfolio

turnover

and

expense

ratios,

are

disclosed

in

the Consolidated

Financial

Highlights.

9. #### Subsequent

#### Events
The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the

consolidated

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

#### Abbreviations

#### Selected

#### Portfolio

#### ADR
American

Depositary

Receipt

Templeton

Dragon

Fund,

Inc.

Report

of

Independent

Registered

Public

Accounting

Firm

franklintempleton.com

Annual

Report

To

the

Board

of

Directors

and

Shareholders

of

Templeton

Dragon

Fund,

Inc.

#### Opinion

#### on

#### the

#### Financial

#### Statements
We

have

audited

the

accompanying

consolidated

statement

of

assets

and

liabilities,

including

the

consolidated

schedule

of

investments,

of

Templeton

Dragon

Fund,

Inc.

and

its

subsidiary

(the

"Fund")

as

of

December

31,

2025,

the

related

consolidated

statement

of

operations

for

the

year

ended

December

31,

2025,

the

consolidated

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2025,

including

the

related

notes,

and

the

consolidated

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2025

(collectively

referred

to

as

the

"consolidated

financial

statements").

In

our

opinion,

the

consolidated

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2025,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2025

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2025

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

#### Basis

#### for

#### Opinion
These

consolidated

financial

statements

are

the

responsibility

of

the

Fund's

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund's

consolidated

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

consolidated

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

consolidated

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

consolidated

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

consolidated

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

consolidated

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2025

by

correspondence

with

the

custodian,

transfer

agents,

private

placement

agent

and

broker;

when

replies

were

not

received

from

a

private

placement

agent,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

/s/PricewaterhouseCoopers

LLP

San

Francisco,

California

February

19,

2026

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948. Templeton

Dragon

Fund,

Inc.

Tax

Information

(unaudited)

franklintempleton.com

Annual

Report

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Fund

hereby

reports

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2025:

Under

Section

853

of

the

Internal

Revenue

Code,

the

Fund

intends

to

elect

to

pass

through

to

its

shareholders

the

following

amounts,

or

amounts

as

finally

determined,

of

foreign

taxes

paid

and

foreign

source

income

earned

by

the

Fund

during

the

fiscal

year

ended

December

31,

2025

:

#### Pursuant

#### to:

#### Amount

#### Reported
Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$32,433

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$2,382,080

Section

163(j)

Interest

Earned

§163(j)

$193,828

#### Amount

#### Reported
Foreign

Taxes

Paid

$506,283

Foreign

Source

Income

Earned

$3,771,496

Templeton

Dragon

Fund,

Inc.

franklintempleton.com

Annual

Report

Important

Information

to

Shareholders

#### Share

#### Repurchase

#### Program
The

Fund's

Board

has

approved

an

open-market

share

repurchase

program

which

includes

an

initial

authorization

for

the

Fund

to

repurchase

up

to

10%

of

its

outstanding

shares

in

open-market

transactions,

as

well

as

up

to

an

additional

10%

of

its

outstanding

shares,

above

and

in

addition

to

the

initial

10%

previously

authorized.

This

authorization

remains

in

effect.

The

timing

and

amount

of

repurchases

continue

to

be

at

the

discretion

of

the

investment

manager,

taking

into

account

various

factors,

including,

but

not

limited

to,

the

level

of

the

discount,

the

Fund's

performance,

portfolio

holdings,

dividend

history,

market

conditions,

cash

on

hand,

the

availability

of

other

attractive

investments

and

whether

the

sale

of

certain

portfolio

securities

would

be

undesirable

because

of

liquidity

concerns

or

because

the

sale

might

subject

the

Fund

to

adverse

tax

consequences.

Any

repurchases

would

be

made

on

a

national

securities

exchange

at

the

prevailing

market

price,

subject

to

exchange

requirements,

federal

securities

laws

and

rules

that

restrict

repurchases,

and

the

terms

of

any

outstanding

leverage

or

borrowing

of

the

Fund.

If

and

when

the

Fund's

additional

10%

threshold

is

reached,

no

further

repurchases

could

be

completed

until

authorized

by

the

Board.

Until

the

additional

10%

threshold

is

reached,

Fund

management

will

have

the

flexibility

to

commence

share

repurchases

if

and

when

it

is

determined

to

be

appropriate

in

light

of

prevailing

circumstances.

The

share

repurchase

program

is

intended

to

benefit

shareholders

by

enabling

the

Fund

to

repurchase

shares

at

a

discount

to

net

asset

value,

thereby

increasing

the

proportionate

interest

of

each

remaining

shareholder

in

the

Fund.

In

the

Notes

to

Consolidated

Financial

Statements

section,

please

see

note

(Capital

Stock)

for

additional

information

regarding

shares

repurchased.

#### Managed

#### Distribution

#### Plan
The

Board

has

implemented

a

managed

distribution

plan

where

the

Fund

distributes

a

level

distribution

amount

to

shareholders.

The

Fund

intends

to

make

quarterly

distributions

to

shareholders

at

the

fixed

rate

of

$0.10

per

share.

Management

will

generally

distribute

amounts

necessary

to

satisfy

the

Fund's

plan

and

the

requirements

prescribed

by

excise

tax

rules

and

Subchapter

M

of

the

Internal

Revenue

Code.

The

plan

is

intended

to

provide

shareholders

with

a

consistent

distribution

each

quarter

and

is

intended

to

narrow

the

discount

between

the

market

price

and

the

NAV

of

the

Fund's

shares,

but

there

is

no

assurance

that

the

plan

will

be

successful

in

doing

so.

Under

the

managed

distribution

plan,

to

the

extent

that

sufficient

investment

income

is

not

available

on

a

quarterly

basis,

the

Fund

will

distribute

long-term

capital

gains

and/or

return

of

capital

in

order

to

maintain

its

managed

distribution

rate.

No

conclusions

should

be

drawn

about

the

Fund's

investment

performance

from

the

amount

of

the

Fund's

distributions

or

from

the

terms

of

the

Fund's

managed

distribution

plan.

The

Board

may

amend

the

terms

of

the

plan

or

terminate

the

plan

at

any

time.

The

amendment

or

termination

of

the

plan

could

have

an

adverse

effect

on

the

market

price

of

the

Fund's

shares.

The

plan

will

be

subject

to

the

periodic

review

by

the

Board,

including

a

yearly

review

of

the

fixed

rate

to

determine

if

an

adjustment

should

be

made.

In

compliance

with

Rule

19a-1

of

the

Investment

Company

Act

of

1940,

shareholders

will

receive

a

notice

that

details

the

source

of

income

for

each

dividend

such

as

net

investment

income,

gain

from

the

sale

of

securities

and

return

of

principal.

However,

determination

of

the

actual

source

of

the

Fund's

dividend

can

only

be

made

at

year-end.

The

actual

source

amounts

of

all

Fund

dividends

will

be

included

in

the

Fund's

annual

or

semiannual

reports.

In

addition,

the

tax

treatment

may

differ

from

the

accounting

treatment

used

to

calculate

the

source

of

the

Fund's

dividends

as

shown

on

shareholders'

statements.

Shareholders

should

refer

to

their

Form

1099-DIV

for

the

character

and

amount

of

distributions

for

income

tax

reporting

purposes.

Since

each

shareholder's

tax

situation

is

unique,

it

may

be

advisable

to

consult

a

tax

advisor

as

to

the

appropriate

treatment

of

Fund

distributions.

#### Information

#### About

#### the

#### Fund's

#### Goal

#### and

#### Main

#### Investments,

#### Principal

#### Investment

#### Strategy,

#### and

#### Principal

#### Risks

#### Your

#### Fund's

#### Goal

#### and

#### Main

#### Investments
The

Fund

seeks

long-term

capital

appreciation

by

investing

at

least

45%

of

its

total

assets

in

equity

securities

of

"China

companies."

"China

companies"

are

companies

(i) organized

under

the

laws

of,

or

with

a

principal

office

in,

the

People's

Republic

of

China

("China"

or

the

"PRC")

or

Hong

Kong,

or

the

principal

business

activities

of

which

are

conducted

Templeton

Dragon

Fund,

Inc.

Important

Information

to

Shareholders

franklintempleton.com

Annual

Report

in

China

or

Hong

Kong,

or

for

which

the

principal

equity

securities

trading

market

is

in

China

or

Hong

Kong,

or

(ii) that

derive

at

least

50%

of

their

revenues

from

goods

or

services

sold

or

produced,

or

have

at

least

50%

of

their

assets,

in

China

or

Hong

Kong.

Determinations

as

to

eligibility

will

be

made

by

the

investment

manager

based

on

publicly

available

information

and

inquiries

made

to

the

companies.

#### Principal

#### Investment

#### Strategy
Under

normal

circumstances,

the

Fund

will

invest

at

least

45%

of

its

total

assets

in

the

equity

securities

of

China

companies.

The

Fund

may

invest

in

companies

listed

on

exchanges

in

mainland

China,

Hong

Kong,

Taiwan,

or

elsewhere

that,

in

the

judgment

of

the

investment

manager,

are

expected

to

benefit

from

developments

in

the

economy

of

China.

Equity

securities

means

common

or

preferred

stock

(including

convertible

preferred

stock);

bonds,

notes

or

debentures

convertible

into

common

or

preferred

stock;

stock

purchase

warrants

or

rights;

equity

interests

in

trusts,

partnerships,

joint

ventures

or

similar

enterprises;

and

sponsored

or

unsponsored

American

or

Global

Depositary

Receipts.

Investments

in

China

companies

also

may

be

made

through

a

special

structure

known

as

a

variable

interest

entity

("VIE")

that

is

designed

to

provide

foreign

investors

with

exposure

to

China

companies

that

operate

in

certain

sectors

in

which

China

restricts

or

prohibits

foreign

investments.

The

Fund

may

also

invest

to

a

limited

degree

(up

to

20%

of

its

total

assets)

in

debt

obligations

of

China

companies,

which

may

be

lower-rated

or

non-rated,

including

debt

securities

the

issuer

of

which

is

in

payment

default,

when

consistent

with

the

Fund's

investment

objective.

The

Fund

intends

to

invest

its

assets

over

a

broad

spectrum

of

sectors

including,

among

others,

as

conditions

warrant

from

time

to

time,

consumer

discretionary,

communication

services,

health

care,

financials,

and

information

technology.

The

Fund

is

not

permitted

to

invest

more

than

25%

of

its

assets

in

any

one

industry.

In

addition,

the

Fund's

Board

of

Directors

has

adopted

a

non-fundamental

policy

under

which

the

Fund

will

not

invest

more

than

15%

of

its

assets

in

any

one

issuer.

In

addition,

the

Fund

may

invest

up

to

25%

of

its

total

assets

in

direct

equity

investments

that

the

investment

manager

expects

will

become

listed

or

otherwise

publicly

traded

securities.

Direct

investments

will

consist

of

(i) the

private

purchase

from

an

enterprise

of

an

equity

interest

in

the

enterprise

in

the

form

of

shares

of

common

stock

or

equity

interests

in

trusts,

partnerships,

joint

ventures

or

similar

enterprises,

and

(ii) the

purchase

of

such

an

equity

interest

in

an

enterprise

from

a

principal

investor

in

the

enterprise.

The

Fund's

investment

objective

of

long-term

capital

appreciation

and

its

policy

of

investing,

under

normal

circumstances,

at

least

45%

of

its

total

assets

in

the

equity

securities

of

China

companies,

are

fundamental

and

may

not

be

changed

without

the

approval

of

a

majority

of

the

Fund's

outstanding

voting

securities.

In

addition,

the

Fund

has

adopted

as

a

fundamental

investment

policy

the

requirement

that,

under

normal

circumstances,

the

Fund

will

invest

at

least

65%

of

its

total

assets

in

China

companies,

Japan

companies

and

Asia-Pacific

companies.

Finally,

the

Fund

has

adopted

a

fundamental

policy

that

it

may

not

invest

more

than

20%

of

the

total

value

of

its

assets

in

Japan

companies.

The

Fund

may

invest

in

eligible

China

A-shares.

China

A

shares

can

be

accessed

through

the

Stock

Connect

program,

which

covers

securities

listed

and

traded

on

the

Shanghai

Stock

Exchange

through

the

Shanghai-Hong

Kong

Stock

Connect

program,

as

well

as

securities

listed

and

traded

on

the

Shenzhen

Stock

Exchange

through

the

Shenzhen-Hong

Kong

Stock

Connect

program.

China

A

shares

can

also

be

accessed

through

other

means,

including

Qualified

Foreign

Institutional

Investor

regime

(QFII).

The

Fund

invests

in

certain

China

A-shares

through

its

investment

in

Templeton

China

Opportunities

Fund,

Ltd.

(the

"China

Fund").

The

China

Fund

is

a

Cayman

Islands

exempted

company,

and

is

a

wholly-owned

subsidiary

of

the

Fund,

and

is

able

to

invest

directly

in

China

A-shares

consistent

with

the

investment

objective

of

the

Fund.

The

China

Fund

gains

access

to

the

China

A-shares

market

through

the

Stock

Connect

program,

as

well

as

through

Templeton

Investment

Counsel,

LLC

(TIC),

which

serves

as

the

registered

QFII

for

the

China

Fund.

Investment

decisions

related

to

the

China

Fund

A-shares

are

specific

to

the

Fund

and

it

bears

the

resultant

economic

and

tax

consequences

of

its

holdings

and

transactions

in

A-shares.

The

China

Fund

is

subject

to

certain

restrictions

and

administrative

processes

relating

to

its

ability

to

repatriate

cash

balances,

investment

proceeds,

and

earnings

associated

with

its

A-shares

and

may

incur

delays

in

gaining

access

to

its

assets

or

a

loss

of

value

in

the

event

of

noncompliance

with

applicable

Chinese

rules

or

requirements.

Templeton

Dragon

Fund,

Inc.

Important

Information

to

Shareholders

franklintempleton.com

Annual

Report

The

Fund

may

use

currency

forward

contracts

to

hedge

currency

risk.

A

currency

forward

contract

is

an

obligation

to

purchase

or

sell

a

specific

non-U.S.

currency

in

exchange

for

another

currency,

which

may

be

U.S.

dollars,

at

an

agreed

exchange

rate

(price)

at

a

future

date.

Currency

forwards

are

typically

individually

negotiated

and

privately

traded

by

currency

traders

and

their

customers

in

the

interbank

market.

During

periods

in

which

the

investment

manager

believes

changes

in

economic,

financial

or

political

conditions

make

it

advisable,

the

Fund

may,

for

temporary

defensive

purposes,

reduce

its

holdings

in

equity

securities

and

invest

without

limit

in

certain

short-term

(less

than

twelve

months

to

maturity)

and

medium-term

(not

greater

than

five

years

to

maturity)

debt

securities

or

hold

cash.

The

short-term

and

medium-term

debt

securities

in

which

the

Fund

may

invest

consist

of

(a) obligations

of

the

U.S.,

Chinese

or

Hong

Kong

governments,

and

their

respective

agencies

or

instrumentalities;

(b) bank

deposits

and

bank

obligations

(including

certificates

of

deposit,

time

deposits

and

bankers'

acceptances)

of

U.S.

or

foreign

banks

denominated

in

any

currency;

(c) floating

rate

securities

and

other

instruments

denominated

in

any

currency

issued

by

various

governments

or

international

development

agencies;

(d) finance

company

and

corporate

commercial

paper

and

other

short-term

corporate

debt

obligations

of

U.S.,

Chinese

or

Hong

Kong

corporations;

and

(e) repurchase

agreements

with

banks

and

broker-dealers

with

respect

to

such

securities.

The

Fund

intends

to

invest

for

temporary

defensive

purposes

only

in

short-term

and

medium-term

debt

securities

rated,

at

the

time

of

investment,

A

or

higher

by

Moody's

Investors

Service,

Inc.

or

Standard

&

Poor's

Corporation

or,

if

unrated

by

either

rating

agency,

of

equivalent

credit

quality

to

securities

so

rated

as

determined

by

the

investment

manager.

For

purposes

of

the

Fund's

investment

restriction

prohibiting

the

investment

of

25%

or

more

of

the

total

value

of

its

assets

in

a

particular

industry,

a

foreign

government

(but

not

the

United

States

government)

is

deemed

to

be

an

"industry",

and

therefore

investments

in

the

obligations

of

any

one

foreign

government

may

not

equal

or

exceed

25%

of

the

Fund's

assets.

The

Fund

is

a

"non-diversified"

fund,

which

means

it

generally

invests

a

greater

portion

of

its

assets

in

the

securities

of

one

or

more

issuers

and

invests

overall

in

a

smaller

number

of

issuers

than

a

diversified

fund.

#### Environment,

#### Social

#### and

#### Governance

#### Considerations
The

investment

manager

also

focuses

on

incorporating

environmental,

social

and

governance

(ESG)

factors

throughout

the

investment

process,

including

the

Fund's

security-selection

and

portfolio

construction

process.

The

Fund

focuses

on

companies

with

appropriate

and/or

good

management

of

material

ESG

issues,

and

in

analyzing

ESG

factors,

the

investment

manager

conducts

a

materiality-

based

ESG

assessment

through

both

in-depth

research

and

engagement

with

companies

as

appropriate

to

assess

how

a

company's

practices

are

aimed

at

improving

or

maintaining

the

ESG

footprint

of

its

operating

model.

The

following

provides

examples

of

ESG

elements

that

can

be

taken

into

consideration

when

assessing

a

company:

• Environmental

considerations,

which

can

include

issues

such

as

resource

efficiency,

carbon

emissions

management,

waste

prevention

and

recycling

and

pollution

prevention

and

control.

• Social

considerations,

which

can

include

issues

such

as

labor

standards,

fair

wages,

diversity

and

gender

balance,

health

and

safety

practices

and

product

safety.

• Governance

considerations,

which

can

include

issues

such

as

appropriate

accounting

practices,

alignment

of

interests,

board

effectiveness,

capital

allocation,

shareholder

rights

and

quality

of

disclosures.

In

addition,

the

investment

manager

assesses

the

potential

for

improvement

through

the

Fund's

engagement

as

an

active

owner.

These

are

targeted

engagements

with

specific

goals

and

objectives

based

on

scope

for

improvement.

The

investment

manager

seeks

companies

that

are

good

or

improving

stewards

aligned

with

shareholder

interest

and

the

investment

manager's

governance

assessment

includes

regular

dialogue

with

companies,

monitoring

material

ESG

issues

and

voting

proxies.

The

Fund

also

applies

specific

ESG

exclusions,

including

companies

which,

according

to

the

investment

manager's

analysis:

• repeatedly

and/or

seriously

violate

the

United

Nations

Global

Compact

Principles;

• manufacture

nuclear

or

controversial

weapons

defined

as

anti-personnel

mines,

biological

&

chemical

weaponry,

depleted

uranium

and

cluster

munitions

or

those

that

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manufacture

components

intended

for

use

in

such

weapons

(companies

that

derive

more

than

5%

revenue

from

any

other

weapons

are

also

be

excluded);

• derive

more

than

25%

of

their

revenue

from

thermal

coal

extraction;

or

• manufacture

tobacco

or

tobacco

products.

The

investment

manager

may

consider

selling

an

equity

security

when

it

believes

the

security

has

become

overvalued

due

to

either

its

price

appreciation

or

changes

in

the

company's

fundamentals,

when

there

is

significant

deterioration

of

its

ESG

factors,

or

when

the

investment

manager

believes

another

security

is

a

more

attractive

investment

opportunity.

#### Principal

#### Investment

#### Risks
You

could

lose

money

by

investing

in

the

Fund.

Closed-end

fund

shares

are

not

deposits

or

obligations

of,

or

guaranteed

or

endorsed

by,

any

bank,

and

are

not

insured

by

the

Federal

Deposit

Insurance

Corporation,

the

Federal

Reserve

Board,

or

any

other

agency

of

the

U.S.

government.

#### Foreign

#### Securities

#### (non-U.S.)
Investing

in

foreign

securities

typically

involves

more

risks

than

investing

in

U.S.

securities,

and

includes

risks

associated

with:

(i) internal

and

external

political

and

economic

developments

–

e.g.,

the

political,

economic

and

social

policies

and

structures

of

some

foreign

countries

may

be

less

stable

and

more

volatile

than

those

in

the

U.S.

or

some

foreign

countries

may

be

subject

to

trading

restrictions

or

economic

sanctions;

diplomatic

and

political

developments

could

affect

the

economies,

industries,

and

securities

and

currency

markets

of

the

countries

in

which

the

Fund

is

invested,

which

can

include

rapid

and

adverse

political

changes;

social

instability;

regional

conflicts;

sanctions

imposed

by

the

United

States,

other

nations

or

other

governmental

entities,

including

supranational

entities;

terrorism;

and

war;

(ii) trading

practices

–

e.g.,

there

may

be

less

government

supervision

and

regulation

of

foreign

securities

and

currency

markets,

trading

systems

and

brokers

than

in

the

U.S.;

(iii) availability

of

information

–

e.g.,

foreign

issuers

may

not

be

subject

to

the

same

disclosure,

accounting

and

financial

reporting

standards

and

practices

as

U.S.

issuers;

(iv) limited

markets

–

e.g.,

the

securities

of

certain

foreign

issuers

may

be

less

liquid

(harder

to

sell)

and

more

volatile;

and

(v) currency

exchange

rate

fluctuations

and

policies

–

e.g.,

fluctuations

may

negatively

affect

investments

denominated

in

foreign

currencies

and

any

income

received

or

expenses

paid

by

the

Fund

in

that

foreign

currency.

The

risks

of

foreign

investments

may

be

greater

in

developing

or

emerging

market

countries.

There

are

special

risks

associated

with

investments

in

China,

Hong

Kong

and

Taiwan,

including

exposure

to

currency

fluctuations,

less

liquidity,

expropriation,

confiscatory

taxation,

nationalization

and

exchange

control

regulations

(including

currency

blockage).

Inflation

and

rapid

fluctuations

in

inflation

and

interest

rates

have

had,

and

may

continue

to

have,

negative

effects

on

the

economy

and

securities

markets

of

China,

Hong

Kong

and

Taiwan.

In

addition,

investments

in

Taiwan

and

Hong

Kong

could

be

adversely

affected

by

their

respective

political

and

economic

relationship

with

China.

China,

Hong

Kong

and

Taiwan

are

deemed

by

the

investment

manager

to

be

emerging

markets

countries,

which

means

an

investment

in

these

countries

has

more

heightened

risks

than

general

foreign

investing

due

to

a

lack

of

established

legal,

political,

business

and

social

frameworks

in

these

countries

and

accounting

standards

or

auditor

oversight

in

the

country

to

support

securities

markets

as

well

as

the

possibility

for

more

widespread

corruption

and

fraud.

In

addition,

the

standards

for

environmental,

social

and

corporate

governance

matters

in

China,

Hong

Kong

and

Taiwan

also

tend

to

be

lower

than

such

standards

in

more

developed

economies.

There

may

be

significant

obstacles

to

obtaining

information

necessary

for

investigations

into

or

litigation

against

companies

located

in

or

operating

in

China

and

shareholders

may

have

limited

legal

remedies.

The

imposition

of

tariffs

or

other

trade

barriers

by

the

U.S.

or

foreign

governments

on

exports

from

China

may

also

have

an

adverse

impact

on

Chinese

issuers.

There

is

also

the

risk

that

the

U.S.

government

or

other

governments

may

sanction

Chinese

issuers

or

otherwise

prohibit

U.S.

persons

(such

as

the

Fund)

from

investing

in

certain

Chinese

issuers

which

may

negatively

affect

the

liquidity

and

price

of

their

securities.

In

addition,

currency

fluctuations,

currency

convertibility,

interest

rate

fluctuations

and

higher

rates

of

inflation

as

a

result

of

internal

social

unrest

or

conflicts

with

other

countries

have

had,

and

may

continue

to

have,

negative

effects

on

the

economies

and

securities

markets

of

China.

Certain

investments

in

China

companies

may

be

made

through

a

special

structure

known

as

a

VIE.

In

a

VIE

structure,

foreign

investors,

such

as

the

Fund,

will

only

own

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stock

in

a

shell

company

rather

than

directly

in

the

VIE,

which

must

be

owned

by

Chinese

nationals

(and/or

China

companies)

to

obtain

the

licenses

and/or

assets

required

to

operate

in

a

restricted

or

prohibited

sector

in

China.

The

value

of

the

shell

company

is

derived

from

its

ability

to

consolidate

the

VIE

into

its

financials

pursuant

to

contractual

arrangements

that

allow

the

shell

company

to

exert

a

degree

of

control

over,

and

obtain

economic

benefits

arising

from,

the

VIE

without

formal

legal

ownership.

While

VIEs

are

a

longstanding

industry

practice

and

are

well

known

by

Chinese

officials

and

regulators,

the

structure

historically

has

not

been

formally

recognized

under

Chinese

law.

Recently,

however,

the

China

Securities

Regulatory

Commission

("CSRC")

released

new

rules

that

permit

the

use

of

VIE

structures,

provided

they

abide

by

Chinese

laws

and

register

with

the

CSRC.

The

rules,

however,

may

cause

Chinese

companies

to

undergo

greater

scrutiny

and

may

make

the

process

to

create

VIEs

more

difficult

and

costly.

Further,

while

the

rules

and

implementing

guidelines

do

not

prohibit

the

use

of

VIE

structures,

this

does

not

serve

as

a

formal

endorsement

either.

There

is

a

risk

that

the

Chinese

government

may

cease

to

tolerate

VIEs

at

any

time,

and

any

guidance

or

further

rulemaking

prohibiting

or

restricting

these

structures

by

the

Chinese

government,

generally

or

with

respect

to

specific

industries,

would

likely

cause

impacted

VIE-structured

holding(s)

to

suffer

significant,

detrimental,

and

possibly

permanent

losses.

These

losses

could

in

turn

adversely

affect

the

Fund's

returns

and

net

asset

value.

#### China

#### A-Shares
Investing

in

China

A-shares

may

include

certain

risks

and

considerations

not

typically

associated

with

investing

in

U.S.

securities.

In

general,

A-shares

are

issued

by

companies

incorporated

in

the

PRC

and

listed

on

the

Shanghai

and

Shenzhen

Stock

Exchanges

and

available

for

investment

by

domestic

(Chinese)

investors

and

holders

of

a

QFII

license

and,

in

the

case

of

certain

eligible

A-shares,

through

the

Shanghai

and

Shenzhen

Stock

Connect

programs.

The

Shanghai

and

Shenzhen

Stock

Exchanges

are,

however,

substantially

smaller,

less

liquid

and

more

volatile

than

the

major

securities

markets

in

the

United

States.

Trading

through

Stock

Connect

is

subject

to

a

number

of

restrictions

that

may

affect

the

Fund's

investments

and

returns.

For

example,

a

primary

feature

of

the

Stock

Connect

program

is

the

application

of

the

home

market's

laws

and

rules

applicable

to

investors

in

China

A-shares.

Therefore,

a

fund's

investments

in

Stock

Connect

China

A-shares

are

generally

subject

to

the

securities

regulations

and

listing

rules

of

the

PRC,

among

other

restrictions.

Stock

Connect

can

only

operate

when

both

PRC

and

Hong

Kong

markets

are

open

for

trading

and

when

banking

services

are

available

in

both

markets

on

the

corresponding

settlement

days.

As

such,

the

Shanghai

and

Shenzhen

markets

may

be

open

at

a

time

when

Stock

Connect

is

not

trading,

with

the

result

that

prices

of

China

A-shares

may

fluctuate

at

times

when

the

fund

is

unable

to

add

to

or

exit

its

position,

which

could

adversely

affect

a

fund's

performance.

Additionally,

changes

in

the

operation

of

the

Stock

Connect

program

may

restrict

or

otherwise

affect

a

fund's

investments

or

returns.

Any

changes

in

laws,

regulations

and

policies

of

the

China

A-shares

market

or

rules

in

relation

to

Stock

Connect

may

affect

China

A-share

prices.

These

risks

are

heightened

generally

by

the

developing

state

of

the

PRC's

investment

and

banking

systems

and

the

uncertainty

about

the

precise

nature

of

the

rights

of

equity

owners

and

their

ability

to

enforce

such

rights

under

Chinese

law.

Trading

through

the

Stock

Connect

program

is

also

subject

to

daily

quotas

that

limit

the

maximum

daily

net

purchases

on

any

particular

day,

each

of

which

may

restrict

or

preclude

a

fund's

ability

to

invest

in

China

A-shares

through

the

Stock

Connect

program.

Trading

through

Stock

Connect

may

require

pre-validation

of

cash

or

securities

prior

to

acceptance

of

orders.

This

requirement

may

limit

a

fund's

ability

to

dispose

of

its

A-shares

purchased

through

Stock

Connect

in

a

timely

manner.

#### Regional
Adverse

conditions

in

a

certain

region

or

country

can

adversely

affect

securities

of

issuers

in

other

countries

whose

economies

appear

to

be

unrelated.

Because

the

Fund

invests

its

assets

primarily

in

companies

in

a

specific

region,

the

Fund

is

subject

to

greater

risks

of

adverse

developments

in

that

region

and/or

the

surrounding

regions

than

a

fund

that

is

more

broadly

diversified

geographically.

Political,

social

or

economic

disruptions

in

the

region,

even

in

countries

in

which

the

Fund

is

not

invested,

may

adversely

affect

the

value

of

investments

held

by

the

Fund.

#### Emerging

#### Market

#### Countries
The

Fund's

investments

in

securities

of

issuers

in

emerging

market

countries

are

subject

to

all

of

the

risks

of

foreign

investing

generally,

and

have

additional

heightened

risks

due

to

a

lack

of

established

legal,

political,

business

and

social

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frameworks

to

support

securities

markets,

including:

delays

in

settling

portfolio

securities

transactions;

currency

and

capital

controls;

greater

sensitivity

to

interest

rate

changes;

pervasiveness

of

corruption

and

crime;

currency

exchange

rate

volatility;

and

inflation,

deflation

or

currency

devaluation.

#### Market
The

market

values

of

securities

or

other

investments

owned

by

the

Fund

will

go

up

or

down,

sometimes

rapidly

or

unpredictably.

The

market

value

of

a

security

or

other

investment

may

be

reduced

by

market

activity

or

other

results

of

supply

and

demand

unrelated

to

the

issuer.

This

is

a

basic

risk

associated

with

all

investments.

When

there

are

more

sellers

than

buyers,

prices

tend

to

fall.

Likewise,

when

there

are

more

buyers

than

sellers,

prices

tend

to

rise.

In

addition,

the

value

of

the

Fund's

investments

may

go

up

or

down

due

to

general

market

or

other

conditions

that

are

not

specifically

related

to

a

particular

issuer,

such

as:

real

or

perceived

adverse

economic

changes,

including

widespread

liquidity

issues

and

defaults

in

one

or

more

industries;

changes

in

interest

or

exchange

rates;

unexpected

natural

and

man-made

world

events,

such

as

diseases

or

disasters;

financial,

political

or

social

disruptions,

including

terrorism

and

war;

and

U.S.

trade

disputes

or

other

disputes

with

specific

countries

that

could

result

in

tariffs,

trade

barriers

and

investment

restrictions

in

certain

securities

in

those

countries.

Any

of

these

conditions

can

adversely

affect

the

economies

of

many

companies,

sectors,

nations,

regions

and

the

market

in

general,

in

ways

that

cannot

necessarily

be

foreseen.

Stock

prices

tend

to

go

up

and

down

more

dramatically

than

those

of

debt

securities.

A

slower-growth

or

recessionary

economic

environment

could

have

an

adverse

effect

on

the

prices

of

the

various

stocks

held

by

the

Fund.

#### Depositary

#### Receipts
Depositary

receipts

are

subject

to

many

of

the

risks

of

the

underlying

security.

The

Fund

could

be

exposed

to

the

credit

risk

of

the

custodian

or

financial

institution,

and

in

cases

where

the

issuer's

home

country

does

not

have

developed

financial

markets,

greater

market

risk.

In

addition,

the

depository

institution

may

not

have

physical

custody

of

the

underlying

securities

at

all

times

and

may

charge

fees

for

various

services,

including

forwarding

dividends

and

interest

and

corporate

actions.

The

Fund

would

be

expected

to

pay

a

share

of

the

additional

fees,

which

it

would

not

pay

if

investing

directly

in

the

foreign

securities.

The

Fund

may

experience

delays

in

receiving

its

dividend

and

interest

payments

or

exercising

rights

as

a

shareholder.

#### Non-Diversification
Because

the

Fund

is

non-diversified,

it

may

be

more

sensitive

to

economic,

business,

political

or

other

changes

affecting

individual

issuers

or

investments

than

a

diversified

fund,

which

may

negatively

impact

the

Fund's

performance

and

result

in

greater

fluctuation

in

the

value

of

the

Fund's

shares.

#### Focus
The

greater

the

Fund's

exposure

to

any

single

type

of

investment

–

including

investment

in

a

given

industry,

sector,

region,

country,

issuer,

or

type

of

security

–

the

greater

the

losses

the

Fund

may

experience

upon

any

single

economic,

market,

business,

political,

regulatory,

or

other

occurrence.

As

a

result,

there

may

be

more

fluctuation

in

the

price

of

the

Fund's

shares.

#### Derivative

#### Instruments
The

performance

of

derivative

instruments,

such

as

currency

forwards,

depend

largely

on

the

performance

of

an

underlying

instrument,

such

as

a

currency,

and

such

instruments

often

have

risks

similar

to

their

underlying

instrument,

in

addition

to

other

risks.

Derivatives

instruments

(such

as

currency

forwards)

involve

costs

and

other

risks

such

as

illiquidity,

mispricing

or

improper

valuation

of

the

derivative

instrument,

and

imperfect

correlation

between

the

value

of

the

derivative

and

the

underlying

instrument

so

that

the

Fund

may

not

realize

the

intended

benefits.

When

a

derivative

is

used

for

hedging,

the

change

in

value

of

the

derivative

may

also

not

correlate

specifically

with

the

currency

being

hedged.

With

over-the-counter

derivatives,

there

is

a

risk

that

the

other

party

to

the

transaction

will

fail

to

perform

(known

as

counterparty

risk).

#### Currency

#### Forward

#### Contracts
The

successful

use

of

currency

forward

contracts

will

usually

depend

on

the

investment

manager's

ability

to

accurately

forecast

currency

exchange

rate

movements.

Should

exchange

rates

move

in

an

unexpected

manner,

the

Fund

may

not

achieve

the

anticipated

benefits

of

the

transaction,

or

it

may

realize

losses.

In

addition,

these

techniques

could

result

in

a

loss

if

the

counterparty

to

the

transaction

does

not

perform

as

promised,

including

because

Templeton

Dragon

Fund,

Inc.

Important

Information

to

Shareholders

franklintempleton.com

Annual

Report

of

the

counterparty's

bankruptcy

or

insolvency.

While

the

investment

manager

uses

only

counterparties

that

meet

its

credit

quality

standards,

in

unusual

or

extreme

market

conditions,

a

counterparty's

creditworthiness

and

ability

to

perform

may

deteriorate

rapidly,

and

the

availability

of

suitable

replacement

counterparties

may

become

limited.

Currency

forward

contracts

may

limit

potential

gain

from

a

positive

change

in

the

relationship

between

the

U.S.

dollar

and

foreign

currencies.

Currency

forward

contracts

may

limit

potential

gain

from

a

positive

change

in

the

relationship

between

the

U.S.

dollar

and

foreign

currencies.

Unanticipated

changes

in

currency

prices

may

result

in

poorer

overall

performance

for

the

Fund

than

if

it

had

not

engaged

in

such

contracts.

Moreover,

there

may

be

an

imperfect

correlation

between

the

Fund's

portfolio

holdings

of

securities

denominated

in

a

particular

currency

and

the

currencies

bought

or

sold

in

the

forward

contracts

entered

into

by

the

Fund.

This

imperfect

correlation

may

cause

the

Fund

to

sustain

losses

that

will

prevent

the

Fund

from

achieving

a

complete

hedge

or

expose

the

Fund

to

risk

of

foreign

exchange

loss.

#### Management
The

Fund

is

subject

to

management

risk

because

it

is

an

actively

managed

portfolio.

The

Investment

Manager

will

apply

investment

techniques

and

risk

analyses

in

making

investment

decisions

for

the

Fund,

but

there

can

be

no

guarantee

that

they

will

produce

the

desired

results.

#### ESG

#### Considerations
ESG

considerations

are

one

of

a

number

of

factors

that

the

investment

manager

examines

when

considering

investments

for

the

Fund's

portfolio.

In

light

of

this,

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

issuers

and

may

have

lower

or

adverse

ESG

assessments.

Consideration

of

ESG

factors

may

affect

the

Fund's

exposure

to

certain

issuers

or

industries

and

may

not

work

as

intended.

In

addition,

ESG

considerations

assessed

as

part

of

the

Fund's

investment

process

may

vary

across

types

of

eligible

investments

and

issuers.

In

certain

circumstances,

there

may

be

times

when

not

every

investment

is

assessed

for

ESG

factors

and,

when

they

are,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager's

assessment

of

an

issuer's

ESG

factors

is

subjective

and

will

likely

differ

from

that

of

investors,

third

party

service

providers

(e.g.,

ratings

providers)

and

other

funds.

As

a

result,

securities

selected

by

the

investment

manager

may

not

reflect

the

beliefs

and

values

of

any

particular

investor.

The

investment

manager

also

may

be

dependent

on

the

availability

of

timely,

complete

and

accurate

ESG

data

reported

by

issuers

and/or

third-

party

research

providers,

the

timeliness,

completeness

and

accuracy

of

which

is

out

of

the

investment

manager's

control.

ESG

factors

are

often

not

uniformly

measured

or

defined,

which

could

impact

the

investment

manager's

ability

to

assess

an

issuer.

While

the

investment

manager

views

ESG

considerations

as

having

the

potential

to

contribute

to

the

Fund's

long-term

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

#### Cybersecurity
Cybersecurity

incidents,

both

intentional

and

unintentional,

may

allow

an

unauthorized

party

to

gain

access

to

Fund

assets,

Fund

or

customer

data

(including

private

shareholder

information),

or

proprietary

information,

cause

the

Fund,

the

investment

manager

and/or

their

service

providers

(including,

but

not

limited

to,

Fund

accountants,

custodians,

sub-custodians,

transfer

agents

and

financial

intermediaries)

to

suffer

data

breaches,

data

corruption

or

loss

of

operational

functionality

or

prevent

Fund

investors

from

purchasing,

redeeming

or

exchanging

shares

or

receiving

distributions.

The

investment

manager

has

limited

ability

to

prevent

or

mitigate

cybersecurity

incidents

affecting

third

party

service

providers,

and

such

third

party

service

providers

may

have

limited

indemnification

obligations

to

the

Fund

or

the

investment

manager.

Cybersecurlty

incidents

may

result

in

financial

losses

to

the

Fund

and

its

shareholders,

and

substantial

costs

may

be

incurred

in

an

effort

to

prevent

or

mitigate

future

cybersecurity

incidents.

Issuers

of

securities

in

which

the

Fund

invests

are

also

subject

to

cybersecurity

risks,

and

the

value

of

these

securities

could

decline

if

the

issuers

experience

cybersecurity

incidents.

Because

technology

is

frequently

changing,

new

ways

to

carry

out

cyber

attacks

are

always

developing.

Therefore,

there

is

a

chance

that

some

risks

have

not

been

identified

or

prepared

for,

or

that

an

attack

may

not

be

detected,

which

puts

limitations

on

the

Fund's

ability

to

plan

for

or

respond

to

a

cyber

attack.

Like

other

funds

and

business

enterprises,

the

Fund,

the

investment

manager

and

their

service

providers

are

subject

to

the

risk

of

cyber

incidents

occurring

from

time

to

time.

Please

see

the

Performance

Summary

section

of

this

report

for

additional

risk

disclosure.

Templeton

Dragon

Fund,

Inc.

Important

Information

to

Shareholders

franklintempleton.com

Annual

Report

#### The

#### following

#### information

#### is

#### a

#### summary

#### of

#### material

#### changes

#### during

#### the

#### last

#### fiscal

#### year.

#### This

#### information

#### may

#### not

#### reflect

#### all

#### of

#### the

#### changes

#### that

#### have

#### occurred

#### since

#### you

#### purchased

#### shares

#### of

#### the

#### Fund.

#### Portfolio

#### Manager

#### Changes
The

following

individual

was

added

as

a

portfolio

manager

of

the

Fund:

Effective

April

30,

2025,

Tony

Sun

joined

the

Fund's

portfolio

management

team.

Based

in

Hong

Kong,

Mr.

Sun

joined

Templeton

Global

Investments

–

Emerging

Markets

Equity

in

2019. As

Assistant

Portfolio

Manager

dedicated

to

the

China

Equity

portfolios,

he

has

been

making

recommendations

specific

to

the

various

China

portfolios.

Adding

him

as

portfolio

manager

formalizes

the

contribution

he

has

been

making

to

the

strategy.

He

also

has

research

responsibilities

for

China

technology

and

industrials

companies.

Prior

to

joining

Franklin

Templeton,

Mr.

Sun

spent

five

years

as

a

research

analyst

covering

the

tech

sector

at

Fullerton

Fund

Management.

Mr.

Sun

graduated

from

Fudan

University

with

a

Bachelor

of

Material

Science

and

International

Economy,

as

well

as

a

Master

of

Physics

Electronics.

He

had

also

been

an

exchange

student

in

Technion

in

Israel.

Templeton

Dragon

Fund,

Inc.

Annual

Meeting

of

Shareholders

May

22,

2025

(unaudited)

franklintempleton.com

Annual

Report

The

Annual

Meeting

of

Shareholders

of

Templeton

Dragon

Fund,

Inc.

(the

"Fund")

was

held

at

the

Fund's

offices,

S.E.

2nd

Street,

Fort

Lauderdale,

Florida,

on

May

22,

2025. The

purpose

of

the

meeting

was

to

elect

four

Directors

of

the

Fund

and

to

ratify

the

selection

of

PricewaterhouseCoopers

LLP

as

the

independent

registered

public

accounting

firm

for

the

Fund

for

the

fiscal

year

ending

December

31,

2025. At

the

meeting,

the

following

persons

were

elected

by

the

shareholders

to

serve

as

Directors

of

the

Fund:

Edith

E. Holiday,

Larry

D. Thompson,

Gregory

E. Johnson,

and

Rupert

H. Johnson,

Jr.\*

Shareholders

also

ratified

the

selection

of

PricewaterhouseCoopers

LLP

as

the

independent

registered

public

accounting

firm

for

the

Fund

for

the

fiscal

year

ending

December

31,

2025. No

other

business

was

transacted

at

the

meeting

with

respect

to

the

Fund.

The

results

of

the

voting

at

the

Annual

Meeting

are

as

follows:

1. Election

of

four

Directors:

2. Ratification

of

the

selection

of

PricewaterhouseCoopers

LLP

as

the

independent

registered

public

accounting

firm

for

the

Fund

for

the

fiscal

year

ending

December

31,

2025:

\*

*Harris* 

J. *Ashton,* 

*Ann* 

*Torre* 

*Bates,* 

*Terrence* 

J. *Checki,* 

*Mary* 

C. *Choksi,* 

J. *Michael* 

*Luttig,* 

*David* 

W. *Niemiec* 

*and* 

*Constantine* 

D. *Tseretopoulos* 

*are* 

*Directors* 

*of* 

*the* 

*Fund* 

*who* 

*are* 

*currently* 

*serving* 

*and* 

*whose* 

*terms* 

*of* 

*office* 

*continued* 

*after* 

*the* 

*Annual* 

*Meeting* 

*of* 

*Shareholders.*

#### Term

#### Expiring

#### 2028

#### For

#### %

#### of

#### Outstanding

#### Shares

#### %

#### of

#### Shares

#### Present

#### Against

#### %

#### of

#### Outstanding

#### Shares

#### %

#### of

#### Shares

#### Present

#### Abstain

#### %

#### of

#### Outstanding

#### Shares

#### %

#### of

#### Shares

#### Present
Edith

E. Holiday

.............

Larry

D. Thompson

...........

Gregory

E. Johnson

..........

Rupert

H. Johnson,

Jr.

.........

18,993,763

20,110,765

20,178,012

20,129,352

74.92%

79.32%

79.59%

79.40%

87.25%

92.38%

92.69%

92.46%

2,576,592

1,462,135

1,394,681

1,441,759

10.16%

5.77%

5.50%

5.69%

11.84%

6.72%

6.41%

6.62%

200,128

197,581

197,790

199,372

0.79%

0.78%

0.78%

0.79%

0.92%

0.91%

0.91%

0.92%

#### Shares

#### Voted

#### %

#### of

#### Outstanding

#### Shares

#### %

#### of

#### Shares

#### Present
For

.......................

Against

....................

Abstain

....................

21,292,639

259,047

218,800

83.98%

1.02%

0.86%

97.81%

1.19%

1.01%

Templeton

Dragon

Fund,

Inc.

Dividend

Reinvestment

and

Cash

Purchase

Plan

franklintempleton.com

Annual

Report

The

Fund

offers

a

Dividend

Reinvestment

and

Cash

Purchase

Plan

(the

"Plan")

with

the

following

features:

If

shares

of

the

Fund

are

held

in

the

shareholder's

name,

the

shareholder

will

automatically

be

a

participant

in

the

Plan

unless

he

elects

to

withdraw.

If

the

shares

are

registered

in

the

name

of

a

broker-dealer

or

other

nominee

(i.e.,

in

"street

name"),

the

broker-dealer

or

nominee

will

elect

to

participate

in

the

Plan

on

the

shareholder's

behalf

unless

the

shareholder

instructs

them

otherwise,

or

unless

the

reinvestment

service

is

not

provided

by

the

broker-dealer

or

nominee.

To

receive

dividends

or

distributions

in

cash,

the

shareholder

must

notify

Computershare

Trust

Company,

N.A.

(the

"Plan

Administrator")

at

P.O.

Box

43006

Providence,

RI

02940-3078

or

the

institution

in

whose

name

the

shares

are

held.

The

Plan

Administrator

must

receive

written

notice

ten

business

days

before

the

record

date

for

the

distribution.

Whenever

the

Fund

declares

dividends

in

either

cash

or

shares

of

the

Fund,

if

the

market

price

is

equal

to

or

exceeds

net

asset

value

at

the

valuation

date,

the

participant

will

receive

the

dividends

entirely

in

new

shares

at

a

price

equal

to

the

net

asset

value,

but

not

less

than

95%

of

the

then

current

market

price

of

the

Fund's

shares.

If

the

market

price

is

lower

than

net

asset

value

or

if

dividends

and/or

capital

gains

distributions

are

payable

only

in

cash,

the

participant

will

receive

shares

purchased

on

the

New

York

Stock

Exchange

or

otherwise

on

the

open

market.

A

participant

has

the

option

of

submitting

additional

cash

payments

to

the

Plan

Administrator,

in

any

amounts

of

at

least

$100,

up

to

a

maximum

of

$5,000

per

month,

for

the

purchase

of

Fund

shares

for

his

or

her

account.

These

payments

can

be

made

by

check

payable

to

Computershare

Trust

Company,

N.A.

and

sent

to

Computershare

Trust

Company,

N.A.,

P.O.

Box

43006

Providence,

RI

02940-3078,

Attention:

Templeton

Dragon

Fund,

Inc.

The

Plan

Administrator

will

apply

such

payments

(less

a

$5.00

service

charge

and

less

a

pro

rata

share

of

trading

fees)

to

purchases

of

the

Fund's

shares

on

the

open

market.

Whenever

shares

are

purchased

on

the

New

York

Stock

Exchange

or

otherwise

on

the

open

market,

each

participant

will

pay

a

pro

rata

portion

of

trading

fees.

Trading

fees

will

be

deducted

from

amounts

to

be

invested.

The

Plan

Administrator's

fee

for

a

sale

of

shares

through

the

Plan

is

$15.00

per

transaction

plus

a

$0.12

per

share

trading

fee.

The

automatic

reinvestment

of

dividends

and/or

capital

gains

does

not

relieve

the

participant

of

any

income

tax

that

may

be

payable

on

dividends

or

distributions.

The

participant

may

withdraw

from

the

Plan

without

penalty

at

any

time

by

written

notice

to

the

Plan

Administrator

sent

to

Computershare

Trust

Company,

N.A.,

P.O.

Box

43006

Providence,

RI

02940-3078.

Upon

withdrawal,

the

participant

will

receive,

without

charge,

share

certificates

issued

in

the

participant's

name

for

all

full

shares

held

by

the

Plan

Administrator;

or,

if

the

participant

wishes,

the

Plan

Administrator

will

sell

the

participant's

shares

and

send

the

proceeds

to

the

participant,

less

a

service

charge

of

$15.00

and

less

trading

fees

of

$0.12

per

share.

The

Plan

Administrator

will

convert

any

fractional

shares

held

at

the

time

of

withdrawal

to

cash

at

current

market

price

and

send

a

check

to

the

participant

for

the

net

proceeds.

For

more

information,

please

see

the

Plan's

Terms

and

Conditions

located

at

the

back

of

this

report.

Templeton

Dragon

Fund,

Inc.

Dividend

Reinvestment

and

Cash

Purchase

Plan

franklintempleton.com

Annual

Report

#### Transfer

#### Agent
Computershare

Trust

Company,

N.A.

P.O.

Box

43006

Providence,

RI

02940-3078

(888) 888-0151

www.computershare.com/us

#### Direct

#### Deposit

#### Service

#### for

#### Registered

#### Shareholders
Cash

distributions

can

now

be

electronically

credited

to

a

checking

or

savings

account

at

any

financial

institution

that

participates

in

the

Automated

Clearing

House

("ACH")

system.

The

Direct

Deposit

service

is

provided

for

registered

shareholders

at

no

charge.

To

enroll

in

the

service,

access

your

account

online

by

going

to

www.computershare.com/us

or

dial

(888) 888-0151

(toll

free)

and

follow

the

instructions.

Direct

Deposit

will

begin

with

the

next

scheduled

distribution

payment

date

following

enrollment

in

the

service.

#### Direct

#### Registration
If

you

are

a

registered

shareholder

of

the

Fund,

purchases

of

shares

of

the

Fund

can

be

electronically

credited

to

your

Fund

account

at

Computershare

Trust

Company,

N.A.

through

Direct

Registration.

This

service

provides

shareholders

with

a

convenient

way

to

keep

track

of

shares

through

book

entry

transactions,

electronically

move

book-entry

shares

between

broker-dealers,

transfer

agents

and

DRS

eligible

issuers,

and

eliminate

the

possibility

of

lost

certificates.

For

additional

information,

please

contact

Computershare

Trust

Company,

N.A.

at

(888) 888-0151.

#### Shareholder

#### Information
Shares

of

Templeton

Dragon

Fund,

Inc.

are

traded

on

the

New

York

Stock

Exchange

under

the

symbol

"TDF."

Information

about

the

net

asset

value

and

the

market

price

is

available

at

franklintempleton.com.

For

current

information

about

dividends

and

shareholder

accounts,

call

(888) 888-0151.

Registered

shareholders

can

access

their

Fund

account

on-line.

For

information

go

to

Computershare

Trust

Company,

N.A.'s

website

at

www.computershare.com/us

and

follow

the

instructions.

The

daily

closing

net

asset

value

as

of

the

previous

business

day

may

be

obtained

when

available

by

calling

Franklin

Templeton

Fund

Information

after

a.m.

Pacific

time

any

business

day

at

(800) DIAL

BEN/342-5236.

The

Fund's

net

asset

value

and

dividends

are

also

listed

on

the

NASDAQ

Stock

Market,

Inc.'s

Mutual

Fund

Quotation

Service

("NASDAQ

MFQS").

Shareholders

not

receiving

copies

of

reports

to

shareholders

because

their

shares

are

registered

in

the

name

of

a

broker

or

a

custodian

can

request

that

they

be

added

to

the

Fund's

mailing

list,

by

writing

Templeton

Dragon

Fund,

Inc.,

Fountain

Parkway,

P.O.

Box

33030,

St.

Petersburg,

FL,

33733-8030.

Templeton

Dragon

Fund,

Inc.

Board

Members

and

Officers

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person's

successor

is

elected

and

qualified.

Independent

Board

Members

#### Name,

#### Year

#### of

#### Birth

#### and

#### Address

#### Position

#### Length

#### of

#### Time

#### Served

#### Number

#### of

#### Portfolios

#### in

#### Fund

#### Complex

#### Overseen

#### by

#### Board

#### Member

#### 1

#### Other

#### Directorships

#### Held

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years

#### Harris
J. #### Ashton
(1932) Director

Since

1994

Bar-S

Foods

(meat

packing

company)

(1981-2010).

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

#### Principal

#### Occupation

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years:
Director

of

various

companies;

and

#### formerly
,

Director,

RBC

Holdings,

Inc.

(bank

holding

company)

(until

2002);

and

President,

Chief

Executive

Officer

and

Chairman

of

the

Board,

General

Host

Corporation

(nursery

and

craft

centers)

(until

1998).

#### Ann

#### Torre

#### Bates
(1958) Director

Since

2008

Ares

Core

Infrastructure

Fund

(private

investment

management

company)

(2024-present);

Ares

Strategic

Income

Fund

(closed-end

investment

management

company)

(2022-present);

Ares

Capital

Corporation

(specialty

finance

company)

(2010-present);

and

#### formerly
,

United

Natural

Foods,

Inc.

(food

distribution)

(2013-2023)

and

Navient

Corporation

(loan

management,

servicing

and

asset

recovery)

(2014-2016).

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

#### Principal

#### Occupation

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years:
Director

of

various

companies;

and

#### formerly
,

Executive

Vice

President

and

Chief

Financial

Officer,

NHP

Incorporated

(manager

of

multifamily

housing)

(1995-1997);

and

Vice

President

and

Treasurer,

US

Airways,

Inc.

(until

1995).

#### Terrence
J. #### Checki
(1945) Director

Since

2023

Hess

Corporation

(exploration

of

oil

and

gas)

(2014-2025).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

#### Principal

#### Occupation

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years:
Member

of

the

Council

on

Foreign

Relations

(1996-present);

Member

of

the

National

Committee

on

U.S.-China

Relations

(1999-present);

member

of

the

board

of

trustees

of

the

Economic

Club

of

New

York

(2013-present);

member

of

the

board

of

trustees

of

the

Foreign

Policy

Association

(2005-present);

member

of

the

board

of

directors

of

Council

of

the

Americas

(2007-present)

and

the

Tallberg

Foundation

(2018-present);

and

#### formerly
,

Executive

Vice

President

of

the

Federal

Reserve

Bank

of

New

York

and

Head

of

its

Emerging

Markets

and

Internal

Affairs

Group

and

Member

of

Management

Committee

(1995-2014);

and

Visiting

Fellow

at

the

Council

on

Foreign

Relations

(2014).

#### Mary
C. #### Choksi
(1950) Director

Since

2016

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

#### formerly
,

Avis

Budget

Group

Inc.

(car

rental)

(2007-2020).

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

#### Principal

#### Occupation

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years:
Director

of

various

companies;

and

#### formerly
,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Templeton

Dragon

Fund,

Inc.

franklintempleton.com

Annual

Report

#### Name,

#### Year

#### of

#### Birth

#### and

#### Address

#### Position

#### Length

#### of

#### Time

#### Served

#### Number

#### of

#### Portfolios

#### in

#### Fund

#### Complex

#### Overseen

#### by

#### Board

#### Member

#### 1

#### Other

#### Directorships

#### Held

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years

#### Edith
E. #### Holiday
(1952) Lead

Independent

Director

Director

since

1996

and

Lead

Independent

Director

since

2007

Santander

Holdings

USA

(holding

company)

(2019-present);

and

#### formerly
,

Hess

Corporation

(exploration

of

oil

and

gas)

(1993-

2025);

Santander

Consumer

USA

Holdings,

Inc.

(consumer

finance)

(2016-2023),

Canadian

National

Railway

(railroad)

(2001-2021),

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2004-

2021),

RTI

International

Metals,

Inc.

(manufacture

and

distribution

of

titanium)

(1999-2015)

and

H.J.

Heinz

Company

(processed

foods

and

allied

products)

(1994-2013).

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

#### Principal

#### Occupation

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years:
Director

or

Trustee

of

various

companies

and

trusts;

and

#### formerly
,

Assistant

to

the

President

of

the

United

States

and

Secretary

of

the

Cabinet

(1990-1993);

General

Counsel

to

the

United

States

Treasury

Department

(1989-1990);

and

Counselor

to

the

Secretary

and

Assistant

Secretary

for

Public

Affairs

and

Public

Liaison-United

States

Treasury

Department

(1988-1989).

J. #### Michael

#### Luttig
(1954) Director

Since

2009

Boeing

Capital

Corporation

(aircraft

financing)

(2006-2010).

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

#### Principal

#### Occupation

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years:
Director

of

various

companies;

and

#### formerly
,

Counselor

and

Special

Advisor

to

the

CEO

and

Board

of

Directors

of

the

Coca-Cola

Company

(beverage

company)

(2021-2025);

Counselor

and

Senior

Advisor

to

the

Chairman,

CEO,

and

Board

of

Directors,

of

The

Boeing

Company

(aerospace

company),

and

member

of

the

Executive

Council

(2019-2020);

Executive

Vice

President,

General

Counsel

and

member

of

the

Executive

Council,

The

Boeing

Company

(2006-2019);

and

Federal

Appeals

Court

Judge,

United

States

Court

of

Appeals

for

the

Fourth

Circuit

(1991-2006).

#### David
W. #### Niemiec
(1949) Director

Since

2005

Hess

Midstream

LP

(oil

and

gas

midstream

infrastructure)

(2017-present).

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

#### Principal

#### Occupation

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years:
Advisor,

Saratoga

Partners

(private

equity

fund);

and

#### formerly
,

Managing

Director,

Saratoga

Partners

(1998-2001)

and

SBC

Warburg

Dillon

Read

(investment

banking)

(1997-1998);

Vice

Chairman,

Dillon,

Read

&

Co.

Inc.

(investment

banking)

(1991-1997);

and

Chief

Financial

Officer,

Dillon,

Read

&

Co.

Inc.

(1982-1997).

#### Larry
D. #### Thompson
(1945) Director

Since

2005

Graham

Holdings

Company

(education

and

media

organization)

(2011-2021);

The

Southern

Company

(energy

company)

(2014-2020;

previously

2010-

2012)

and

Cbeyond,

Inc.

(business

communications

provider)

(2010-

2012).

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

#### Principal

#### Occupation

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years:
Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A. Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

#### formerly
,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Independent

Board

Members

(continued)

Templeton

Dragon

Fund,

Inc.

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

#### Name,

#### Year

#### of

#### Birth

#### and

#### Address

#### Position

#### Length

#### of

#### Time

#### Served

#### Number

#### of

#### Portfolios

#### in

#### Fund

#### Complex

#### Overseen

#### by

#### Board

#### Member

#### 1

#### Other

#### Directorships

#### Held

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years

#### Constantine
D. #### Tseretopoulos
(1954) Director

Since

1998

None

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

#### Principal

#### Occupation

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years:
Physician,

Chief

of

Staff,

owner

and

operator

of

the

Lyford

Cay

Hospital

(1987-present);

director

of

various

nonprofit

organizations;

and

#### formerly
,

Cardiology

Fellow,

University

of

Maryland

(1985-1987);

and

Internal

Medicine

Resident,

Greater

Baltimore

Medical

Center

(1982-

1985).

#### Name,

#### Year

#### of

#### Birth

#### and

#### Address

#### Position

#### Length

#### of

#### Time

#### Served

#### Number

#### of

#### Portfolios

#### in

#### Fund

#### Complex

#### Overseen

#### by

#### Board

#### Member

#### 1

#### Other

#### Directorships

#### Held

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years

#### Gregory
E. #### Johnson

#### 2
(1961) Chairman

of

the

Board,

Vice

President

and

Director

Chairman

of

the

Board

and

Vice

President

since

2023

and

Director

since

2006

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

#### Principal

#### Occupation

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years:
Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton

fund

complex;

Vice

Chairman,

Investment

Company

Institute;

and

#### formerly
,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015)

Franklin

Resources,

Inc.

#### Rupert
H. #### Johnson,

#### Jr.

#### 3
(1940) Director

Since

2013

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

#### Principal

#### Occupation

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years:
Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

#### Bjorn
A. #### Davis
(1965) Chief

Compliance

Officer

Since

2024

Not

Applicable

Not

Applicable

First

Stamford

Place

Stamford,

CT

06902

#### Principal

#### Occupation

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years:
Vice

President,

Franklin

Templeton

Global

Regulatory

Compliance

US

Advisory

Services;

Chief

Compliance

Officer,

Franklin

Advisers,

Inc.,

Franklin

Mutual

Advisers

LLC,

Franklin

Templeton

Institutional

LLC,

Templeton

Investment

Counsel

LLC

and

Templeton

Global

Advisors

Limited

(since

2023);

#### formerly
,

Director,

Franklin

Templeton

Global

Regulatory

Compliance;

Chief

Compliance

Officer,

K2

Advisors,

LLC

and

K2/D&S

Management

Co.,

LLC

(2011-2023).

#### Susan

#### Kerr
(1949) Vice

President

–

AML

Compliance

Since

2021

Not

Applicable

Not

Applicable

One

Madison

Avenue

New

York,

NY

10010

#### Principal

#### Occupation

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years:
Senior

Compliance

Analyst,

Franklin

Templeton;

Chief

Anti-Money

Laundering

Compliance

Officer,

Legg

Mason

&

Co.,

or

its

affiliates;

Anti

Money

Laundering

Compliance

Officer;

Senior

Compliance

Officer,

Franklin

Distributors,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

Independent

Board

Members

(continued)

Templeton

Dragon

Fund,

Inc.

franklintempleton.com

Annual

Report

Note

1:

Rupert

H. Johnson,

Jr.

is

the

uncle

of

Gregory

E. Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

1. Information

is

for

the

calendar

year

ended

December

31,

2025,

unless

otherwise

noted.

We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

2. Gregory

E. Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund's

investment

manager

and

distributor.

3. Rupert

H. Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

a

major

shareholder

of

Resources,

which

is

the

parent

company

of

the

Fund's

investment

manager

and

distributor.

#### The

#### Sarbanes-Oxley

#### Act

#### of

#### 2002

#### and

#### Rules

#### adopted

#### by

#### the

#### U.S.

#### Securities

#### and

#### Exchange

#### Commission

#### require

#### the

#### Fund

#### to

#### disclose

#### whether

#### the

#### Fund's

#### Audit

#### Committee

#### includes

#### at

#### least

#### one

#### member

#### who

#### is

#### an

#### audit

#### committee

#### financial

#### expert

#### within

#### the

#### meaning

#### of

#### such

#### Act

#### and

#### Rules.

#### The

#### Fund's

#### Board

#### has

#### determined

#### that

#### there

#### is

#### at

#### least

#### one

#### such

#### financial

#### expert

#### on

#### the

#### Audit

#### Committee

#### and

#### has

#### designated

#### each

#### of

#### Ann

#### Torre

#### Bates

#### and

#### David
W. #### Niemiec

#### as

#### an

#### audit

#### committee

#### financial

#### expert.

#### The

#### Board

#### believes

#### that

#### Ms.

#### Bates

#### and

#### Mr.

#### Niemiec

#### qualify

#### as

#### such

#### an

#### expert

#### in

#### view

#### of

#### their

#### extensive

#### business

#### background

#### and

#### experience.

#### Ms.

#### Bates

#### has

#### served

#### as

#### a

#### member

#### of

#### the

#### Fund

#### Audit

#### Committee

#### since
2008. #### She

#### currently

#### serves

#### as

#### a

#### director

#### of

#### Ares

#### Capital

#### Corporation

#### (2010-present)

#### and

#### United

#### Natural

#### Foods,

#### Inc.

#### (2013-present)

#### and

#### was

#### formerly

#### a

#### director

#### of

#### Navient

#### Corporation

#### from

#### 2014

#### to

#### 2016,

#### SLM

#### Corporation

#### from

#### 1997

#### to

#### 2014

#### and

#### Allied

#### Capital

#### Corporation

#### from

#### 2003

#### to

#### 2010,

#### Executive

#### Vice

#### President

#### and

#### Chief

#### Financial

#### Officer

#### of

#### NHP

#### Incorporated

#### from

#### 1995

#### to

#### 1997

#### and

#### Vice

#### President

#### and

#### Treasurer

#### of

#### US

#### Airways,

#### Inc.

#### until
1995. #### Mr.

#### Niemiec

#### has

#### served

#### as

#### a

#### member

#### of

#### the

#### Fund

#### Audit

#### Committee

#### since

#### 2005,

#### currently

#### serves

#### as

#### an

#### Advisor

#### to

#### Saratoga

#### Partners

#### and

#### was

#### formerly

#### its

#### Managing

#### Director

#### from

#### 1998

#### to

#### 2001

#### and

#### serves

#### as

#### a

#### director

#### of

#### Hess

#### Midstream

#### LP

#### (2017-present).

#### Mr.

#### Niemiec

#### was

#### formerly

#### a

#### director

#### of

#### Emeritus

#### Corporation

#### from

#### 1999

#### to

#### 2010

#### and

#### OSI

#### Pharmaceuticals,

#### Inc.

#### from

#### 2006

#### to

#### 2010,

#### Managing

#### Director

#### of

#### SBC

#### Warburg

#### Dillon

#### Read

#### from

#### 1997

#### to

#### 1998,

#### and

#### was

#### Vice

#### Chairman

#### from

#### 1991

#### to

#### 1997

#### and

#### Chief

#### Financial

#### Officer

#### from

#### 1982

#### to

#### 1997

#### of

#### Dillon,

#### Read

#### &

#### Co.

#### Inc.

#### As

#### a

#### result

#### of

#### such

#### background

#### and

#### experience,

#### the

#### Board

#### believes

#### that

#### Ms.

#### Bates

#### and

#### Mr.

#### Niemiec

#### have

#### each

#### acquired

#### an

#### understanding

#### of

#### generally

#### accepted

#### accounting

#### principles

#### and

#### financial

#### statements,

#### the

#### general

#### application

#### of

#### such

#### principles

#### in

#### connection

#### with

#### the

#### accounting

#### estimates,

#### accruals

#### and

#### reserves,

#### and

#### analyzing

#### and

#### evaluating

#### financial

#### statements

#### that

#### present

#### a

#### breadth

#### and

#### level

#### of

#### complexity

#### of

#### accounting

#### issues

#### generally

#### comparable

#### to

#### those

#### of

#### the

#### Fund,

#### as

#### well

#### as

#### an

#### understanding

#### of

#### internal

#### controls

#### and

#### procedures

#### for

#### financial

#### reporting

#### and

#### an

#### understanding

#### of

#### audit

#### committee

#### functions.

#### Ms.

#### Bates

#### and

#### Mr.

#### Niemiec

#### are

#### independent

#### Board

#### members

#### as

#### that

#### term

#### is

#### defined

#### under

#### the

#### applicable

#### U.S.

#### Securities

#### and

#### Exchange

#### Commission

#### Rules

#### and

#### Releases.

#### Name,

#### Year

#### of

#### Birth

#### and

#### Address

#### Position

#### Length

#### of

#### Time

#### Served

#### Number

#### of

#### Portfolios

#### in

#### Fund

#### Complex

#### Overseen

#### by

#### Board

#### Member

#### 1

#### Other

#### Directorships

#### Held

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years

#### Christopher

#### Kings
(1974) Chief

Executive

Officer

-

Finance

and

Administration

Since

2024

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

#### Principal

#### Occupation

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years:
Senior

Vice

President,

Franklin

Templeton

Services,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

#### Manraj
S. #### Sekhon
(1969) President

and

Chief

Executive

Officer

–

Investment

Management

Since

2018

Not

Applicable

Not

Applicable

Temasek

Blvd.

Suntec

Tower

1,

#38-03

Singapore

038987

#### Principal

#### Occupation

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years:
Chief

Investment

Officer,

Franklin

Templeton

Emerging

Markets

Equity;

and

officer

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

#### Navid
J. #### Tofigh
(1972) Vice

President

and

Secretary

Vice

President

since

2015

and

Secretary

since

2023

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

#### Principal

#### Occupation

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years:
Senior

Associate

General

Counsel,

Franklin

Templeton;

and

officer

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

#### Jeffrey
W. #### White
(1971) Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

2024

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

#### Principal

#### Occupation

#### During

#### at

#### Least

#### the

#### Past

#### 5

#### Years:
Chief

Financial

Officer,

Chief

Accounting

Officer

&

Treasurer

and

officer

of

certain

funds

in

the

Franklin

Templeton

fund

complex;

and

#### formerly
,

Director

and

Assistant

Treasurer

within

Franklin

Templeton

Global

Fund

Tax

and

Fund

Administration

and

Financial

Reporting

(2017-2023).

Interested

Board

Members

and

Officers

(continued)

Templeton

Dragon

Fund,

Inc.

Shareholder

Information

franklintempleton.com

Annual

Report

Proxy

Voting

Policies

and

Procedures

The

Fund's

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund's

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954) 527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund's

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission's

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30. Quarterly

Consolidated

Schedule

of

Investments

The

Fund

files

a

complete

consolidated

schedule

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission's

website

at

sec.gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission's

Public

Reference

Room

in

Washington,

DC. Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800) SEC-0330.

franklintempleton.com

Annual

Report

#### TERMS

#### AND

#### CONDITIONS

#### OF

#### DIVIDEND

#### REINVESTMENT

#### AND

#### CASH

#### PURCHASE

#### PLAN
1. Each

holder

of

shares

(a

"Shareholder")

in

Templeton

Dragon

Fund,

Inc.

(the

"Fund")

whose

Fund

shares

are

registered

in

his

or

her

own

name

will

automatically

be

a

participant

in

the

Dividend

Reinvestment

and

Cash

Purchase

Plan

(the

"Plan"),

unless

any

such

Shareholder

specifically

elects

in

writing

to

receive

all

dividends

and

capital

gains

in

cash,

paid

by

check,

mailed

directly

to

the

Shareholder.

A

Shareholder

whose

shares

are

registered

in

the

name

of

a

broker-

dealer

or

other

nominee

(the

"Nominee")

will

be

a

participant

if

(a) such

a

service

is

provided

by

the

Nominee

and

(b) the

Nominee

makes

an

election

on

behalf

of

the

Shareholder

to

participate

in

the

Plan.

Nominees

intend

to

make

such

an

election

on

behalf

of

Shareholders

whose

shares

are

registered

in

their

names,

as

Nominee,

unless

a

Shareholder

specifically

instructs

his

or

her

Nominee

to

pay

dividends

and

capital

gains

in

cash.

Computershare

Trust

Company,

N.A.

("Computershare")

will

act

as

Plan

Administrator

and

will

open

an

account

for

each

participating

shareholder

("participant")

under

the

Plan

in

the

same

name

as

that

in

which

the

participant's

present

shares

are

registered.

2. Whenever

the

Fund

declares

a

distribution

from

capital

gains

or

an

income

dividend

payable

in

either

cash

or

shares

of

the

Fund

("Fund

shares"),

if

the

market

price

per

share

on

the

valuation

date

equals

or

exceeds

the

net

asset

value

per

share,

participants

will

receive

such

dividend

or

distribution

entirely

in

Fund

shares,

and

Computershare

shall

automatically

receive

such

Fund

shares

for

participant

accounts

including

aggregate

fractions.

The

number

of

additional

Fund

shares

to

be

credited

to

participant

accounts

shall

be

determined

by

dividing

the

equivalent

dollar

amount

of

the

capital

gains

distribution

or

dividend

payable

to

participants

by

the

Fund's

net

asset

value

per

share

of

the

Fund

shares

on

the

valuation

date,

provided

that

the

Fund

shall

not

issue

such

shares

at

a

price

lower

than

95%

of

the

current

market

price

per

share.

The

valuation

date

will

be

the

payable

date

for

such

distribution

or

dividend.

3. Whenever

the

Fund

declares

a

distribution

from

capital

gains

or

an

income

dividend

payable

only

in

cash,

or

if

the

Fund's

net

asset

value

per

share

exceeds

the

market

price

per

share

on

the

valuation

date,

Computershare

shall

apply

the

amount

of

such

dividend

or

distribution

payable

to

participants

to

the

purchase

of

Fund

shares

on

the

open

market

(less

their

pro

rata

share

of

trading

fees

incurred

with

respect

to

open

market

purchases

in

connection

with

the

reinvestment

of

such

dividend

or

distribution).

If,

before

Computershare

has

completed

its

purchases,

the

market

price

exceeds

the

net

asset

value

per

share,

the

average

per

share

purchase

price

paid

by

Computershare

may

exceed

the

net

asset

value

of

the

Fund's

shares,

resulting

in

the

acquisition

of

fewer

shares

than

if

the

dividend

or

capital

gains

distribution

had

been

paid

in

shares

issued

by

the

Fund

at

net

asset

value

per

share.

Such

purchases

will

be

made

promptly

after

the

payable

date

for

such

dividend

or

distribution,

and

in

no

event

more

than

days

after

such

date

except

where

temporary

curtailment

or

suspension

of

purchase

is

necessary

to

comply

with

applicable

provisions

of

the

Federal

securities

laws.

4. A

participant

has

the

option

of

submitting

additional

payments

to

Computershare,

in

any

amounts

of

at

least

$100,

up

to

a

maximum

of

$5,000

per

month,

for

the

purchase

of

Fund

shares

for

his

or

her

account.

These

payments

may

be

made

electronically

through

www.computershare.com/us

or

by

check

payable

to

"Computershare

Trust

Company,

N.A."

and

sent

to

Computershare

Trust

Company,

N.A.,

P.O.

Box

43006

Providence,

RI

02940-3078,

Attention:

Templeton

Dragon

Fund,

Inc.

Computershare

shall

apply

such

payments

(less

a

$5.00

service

charge

and

less

a

pro

rata

share

of

trading

fees)

to

purchases

of

Fund

shares

on

the

open

market,

as

discussed

below

in

paragraph

6. Computershare

shall

make

such

purchases

promptly

on

approximately

the

15th

of

each

month

or,

during

a

month

in

which

a

dividend

or

distribution

is

paid,

beginning

on

the

dividend

payment

date,

and

in

no

event

more

than

days

after

receipt,

except

where

necessary

to

comply

with

provisions

of

Federal

securities

law.

Any

voluntary

payment

received

less

than

two

business

days

before

an

investment

date

shall

be

invested

during

the

following

month

unless

there

are

more

than

days

until

the

next

investment

date,

in

which

case

such

payment

will

be

returned

to

the

participant.

Computershare

shall

return

to

the

participant

his

or

her

entire

voluntary

cash

payment

upon

written

notice

of

withdrawal

received

by

Computershare

not

less

than

hours

before

such

payment

is

to

be

invested.

Such

written

notice

shall

be

sent

to

Computershare

by

the

participant,

as

discussed

below

in

paragraph

14. 5. For

all

purposes

of

the

Plan:

(a) the

market

price

of

the

Fund's

shares

on

a

particular

date

shall

be

the

last

sale

price

on

the

New

York

Stock

Exchange

on

that

date

if

a

business

day

and

if

not,

on

the

preceding

business

day,

or

if

there

is

no

sale

on

such

Exchange

on

such

date,

then

the

mean

between

the

closing

bid

and

asked

quotations

for

such

franklintempleton.com

Annual

Report

#### TERMS

#### AND

#### CONDITIONS

#### OF

#### DIVIDEND

#### REINVESTMENT

#### AND

#### CASH

#### PURCHASE

#### PLAN
(continued)

shares

on

such

Exchange

on

such

date,

and

(b) net

asset

value

per

share

of

the

Fund's

shares

on

a

particular

date

shall

be

as

determined

by

or

on

behalf

of

the

Fund.

6. Open

market

purchases

provided

for

above

may

be

made

on

any

securities

exchange

where

Fund

shares

are

traded,

in

the

over-the-counter

market

or

in

negotiated

transactions

and

may

be

on

such

terms

as

to

price,

delivery

and

otherwise

as

Computershare

shall

determine.

Participant

funds

held

by

Computershare

uninvested

will

not

bear

interest,

and

it

is

understood

that,

in

any

event,

Computershare

shall

have

no

liability

in

connection

with

any

inability

to

purchase

Fund

shares

within

business

days

after

the

payable

date

for

any

dividend

or

distribution

as

herein

provided,

or

with

the

timing

of

any

purchases

effected.

Computershare

shall

have

no

responsibility

as

to

the

value

of

the

Fund

shares

acquired

for

participant

accounts.

For

the

purposes

of

purchases

in

the

open

market,

Computershare

may

aggregate

purchases

with

those

of

other

participants,

and

the

average

price

(including

trading

fees)

of

all

shares

purchased

by

Computershare

shall

be

the

price

per

share

allocable

to

all

participants.

7. Computershare

will

hold

shares

acquired

pursuant

to

this

Plan,

together

with

the

shares

of

other

participants

acquired

pursuant

to

this

Plan,

in

its

name

or

that

of

its

nominee.

Computershare

will

forward

to

participants

any

proxy

solicitation

material

and

will

vote

any

shares

so

held

for

participants

only

in

accordance

with

the

proxies

returned

by

participants

to

the

Fund.

Upon

written

request,

Computershare

will

deliver

to

participants,

without

charge,

a

certificate

or

certificates

for

all

or

a

portion

of

the

full

shares

held

by

Computershare.

8. Computershare

will

confirm

to

participants

each

acquisition

made

for

an

account

as

soon

as

practicable

but

not

later

than

business

days

after

the

date

thereof.

Computershare

will

send

to

participants

a

detailed

account

statement

showing

total

dividends

and

distributions,

date

of

investment,

shares

acquired

and

price

per

share,

and

total

shares

of

record

for

the

account.

Although

participants

may

from

time

to

time

have

an

undivided

fractional

interest

(computed

to

three

decimal

places)

in

a

share

of

the

Fund,

no

certificates

for

a

fractional

share

will

be

issued.

However,

dividends

and

distributions

on

fractional

shares

will

be

credited

to

participant

accounts.

In

the

event

of

termination

of

an

account

under

the

Plan,

Computershare

will

adjust

for

any

such

undivided

fractional

interest

in

cash

at

the

market

price

of

the

Fund's

shares

on

the

date

of

termination.

9. Any

share

dividends

or

split

shares

distributed

by

the

Fund

on

shares

held

by

Computershare

for

participants

will

be

credited

to

participant

accounts.

In

the

event

that

the

Fund

makes

available

to

its

shareholders

transferable

rights

to

purchase

additional

Fund

shares

or

other

securities,

Computershare

will

sell

such

rights

and

apply

the

proceeds

of

the

sale

to

the

purchase

of

additional

Fund

shares

for

the

participant

accounts.

The

shares

held

for

participants

under

the

Plan

will

be

added

to

underlying

shares

held

by

participants

in

calculating

the

number

of

rights

to

be

issued.

10. Computershare's

service

charge

for

capital

gains

or

income

dividend

purchases

will

be

paid

by

the

Fund

when

shares

are

issued

by

the

Fund

or

purchased

on

the

open

market.

Computershare

will

deduct

a

$5.00

service

charge

from

each

voluntary

cash

payment.

Participants

will

be

charged

a

pro

rata

share

of

trading

fees

on

all

open

market

purchases.

11. Participants

may

withdraw

shares

from

such

participant's

account

or

terminate

their

participation

under

the

Plan

by

notifying

Computershare

in

writing.

Such

withdrawal

or

termination

will

be

effective

immediately

if

notice

is

received

by

Computershare

not

less

than

ten

days

prior

to

any

dividend

or

distribution

record

date;

otherwise

such

withdrawal

or

termination

will

be

effective

after

the

investment

of

any

current

dividend

or

distribution

or

voluntary

cash

payment.

The

Plan

may

be

terminated

by

Computershare

or

the

Fund

upon

days'

notice

in

writing

mailed

to

participants.

Upon

any

withdrawal

or

termination,

Computershare

will

cause

a

certificate

or

certificates

for

the

full

shares

held

by

Computershare

for

participants

and

cash

adjustment

for

any

fractional

shares

(valued

at

the

market

value

of

the

shares

at

the

time

of

withdrawal

or

termination)

to

be

delivered

to

participants,

less

any

trading

fees.

Alternatively,

a

participant

may

elect

by

written

notice

to

Computershare

to

have

Computershare

sell

part

or

all

of

the

shares

held

for

him

and

to

remit

the

proceeds

to

him.

Computershare

is

authorized

to

deduct

a

$15.00

service

charge

and

a

trading

fee

of

$0.12

per

share

for

this

transaction

from

the

proceeds.

If

a

participant

disposes

of

all

shares

registered

in

his

name

on

the

books

of

the

Fund,

Computershare

may,

at

its

option,

terminate

the

participant's

account

or

determine

from

the

participant

whether

he

wishes

to

continue

his

participation

in

the

Plan.

12. These

terms

and

conditions

may

be

amended

or

supplemented

by

Computershare

or

the

Fund

at

any

time

or

times,

except

when

necessary

or

appropriate

to

comply

with

franklintempleton.com

Annual

Report

#### TERMS

#### AND

#### CONDITIONS

#### OF

#### DIVIDEND

#### REINVESTMENT

#### AND

#### CASH

#### PURCHASE

#### PLAN
(continued)

applicable

law

or

the

rules

or

policies

of

the

U.S.

Securities

and

Exchange

Commission

or

any

other

regulatory

authority,

only

by

mailing

to

participants

appropriate

written

notice

at

least

days

prior

to

the

effective

date

thereof.

The

amendment

or

supplement

shall

be

deemed

to

be

accepted

by

participants

unless,

prior

to

the

effective

date

thereof,

Computershare

receives

written

notice

of

the

termination

of

a

participant

account

under

the

Plan.

Any

such

amendment

may

include

an

appointment

by

Computershare

in

its

place

and

stead

of

a

successor

Plan

Administrator

under

these

terms

and

conditions,

with

full

power

and

authority

to

perform

all

or

any

of

the

acts

to

be

performed

by

Computershare

under

these

terms

and

conditions.

Upon

any

such

appointment

of

a

Plan

Administrator

for

the

purpose

of

receiving

dividends

and

distributions,

the

Fund

will

be

authorized

to

pay

to

such

successor

Plan

Administrator,

for

a

participant's

account,

all

dividends

and

distributions

payable

on

Fund

shares

held

in

a

participant's

name

or

under

the

Plan

for

retention

or

application

by

such

successor

Plan

Administrator

as

provided

in

these

terms

and

conditions.

13. Computershare

shall

at

all

times

act

in

good

faith

and

agree

to

use

its

best

efforts

within

reasonable

limits

to

ensure

the

accuracy

of

all

services

performed

under

this

Agreement

and

to

comply

with

applicable

law,

but

shall

assume

no

responsibility

and

shall

not

be

liable

for

loss

or

damage

due

to

errors

unless

such

error

is

caused

by

Computershare's

negligence,

bad

faith

or

willful

misconduct

or

that

of

its

employees.

14. Any

notice,

instruction,

request

or

election

which

by

any

provision

of

the

Plan

is

required

or

permitted

to

be

given

or

made

by

the

participant

to

Computershare

shall

be

in

writing

addressed

to

Computershare

Trust

Company,

N.A.,

P.O.

Box

43006

Providence,

RI

02940-3078,

or

www.computershare.

com/us

or

such

other

address

as

Computershare

shall

furnish

to

the

participant,

and

shall

have

been

deemed

to

be

given

or

made

when

received

by

Computershare.

15. Any

notice

or

other

communication

which

by

any

provision

of

the

Plan

is

required

to

be

given

by

Computershare

to

the

participant

shall

be

in

writing

and

shall

be

deemed

to

have

been

sufficiently

given

for

all

purposes

by

being

deposited

postage

prepaid

in

a

post

office

letter

box

addressed

to

the

participant

at

his

or

her

address

as

it

shall

last

appear

on

Computershare's

records.

The

participant

agrees

to

notify

Computershare

promptly

of

any

change

of

address.

16. These

terms

and

conditions

shall

be

governed

by

and

construed

in

accordance

with

the

laws

of

the

State

of

New

York

and

the

rules

and

regulations

of

the

U.S.

Securities

and

Exchange

Commission,

as

they

may

be

amended

from

time

to

time.

TLTDF

A

02/26©

2026

Franklin

Templeton

Investments.

All

rights

reserved.

Investors

should

be

aware

that

the

value

of

investments

made

for

the

Fund

may

go

down

as

well

as

up.

Like

any

investment

in

securities,

the

value

of

the

Fund's

portfolio

will

be

subject

to

the

risk

of

loss

from

market,

currency,

economic,

political

and

other

factors.

The

Fund

and

its

investors

are

not

protected

from

such

losses

by

the

investment

manager.

Therefore,

investors

who

cannot

accept

this

risk

should

not

invest

in

shares

of

the

Fund.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

#### Annual

#### Report

#### Templeton

#### Dragon

#### Fund,

#### Inc.

#### Investment

#### Manager

#### Transfer

#### Agent

#### Fund

#### Information
Templeton

Asset

Management

Ltd.

Computershare

Royall

St.,

Suite

Canton,

MA

02021

Toll

Free

Number:

888-888-0151

International

Phone

Number:

781-575-2879

www.computershare.com

(800) DIAL

BEN®

/

342-5236

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable

ITEM 2. CODE OF ETHICS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) N/A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) N/A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Pursuant to Item 19(a) (1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The Board of Trustees of the Registrant has determined that Ann Torre Bates and David W. Niemiec possess the technical attributes identified in Item 3 to Form N-CSR to qualify as "audit committee financial experts," and has designated Ann Torre Bates and David W. Niemiec as the Audit Committee's financial experts. Ann Torre Bates and David W. Niemiec are "independent" Trustees pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Audit Fees</u>. The aggregate fees billed in the last two fiscal years ending December 31, 2024 and December 31, 2025 (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $58,505 in December 31, 2024 and $50,547 in December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Audit-Related Fees</u>. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant's financial statements were $0 in December 31, 2024 and $0 in December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Tax Fees</u>. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $11,000 in December 31, 2024 and $11,000 in December 31, 2025. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

The aggregate fees paid to the Auditor for products and services rendered by the Auditor to the Service Affiliates were $59,972 for the fiscal year ended December 31, 2024. The services for which these fees were paid included professional fees in connection with SOC 1 reports.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>All Other Fees</u>. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor to the Registrant, other than the services reported in paragraphs (a) through (c) of this item, were $0 in December 31, 2024 and $0 in December 31, 2025.

The aggregate fees paid to the Auditor for products and services rendered by the Auditor to the Service Affiliates were $59,972 for the fiscal year ended December 31, 2024, and $0 for the fiscal year ended December 31, 2025. The services for which these fees were paid included fees in connection with a license for accounting and business knowledge platform Viewpoint, for the fiscal year ended December 31, 2024, and professional fees in connection with SOC 1 reports, for the fiscal year ended December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Audit Committee's pre–approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Registrant's Audit Committee is directly responsible for approving the services to be provided by the Auditors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) pre-approval of all audit and audit related services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) pre-approval of all non-audit related services to be provided to the Registrant by the Auditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) pre-approval of all non-audit related services to be provided by the Auditors to the Registrant and the Service Affiliates where the non-audit services relate directly to the operations or financial reporting of the Registrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) establishment by the Audit Committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the Auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of Audit Committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) None of the services described in paragraphs (b) through (d) of this Item were performed in reliance on paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Non-audit fees billed by the Auditor for services rendered to the Registrant and the Service Affiliates during the reporting period were $140,972 in December 31, 2024 and $358,404 in December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Yes. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Auditor's independence. All services provided by the Auditor to the Registrant or to the Service Affiliates, which were required to be pre-approved, were pre-approved as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Not applicable

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The independent board members are acting as the registrant's audit committee as specified in Section 3(a)(58)(B) of the Exchange Act. The Audit Committee consists of the following Board members:

Ann Torre Bates

Terrence J. Checki

David W. Niemiec

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. Michael Luttig

Constantine D. Tseretopoulos

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable

ITEM 6. SCHEDULE OF INVESTMENTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Please see schedule of investments contained in the Financial Statements and Financial
 Highlights included under Item 1 of this Form N-CSR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable.

ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9. PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.

The information is disclosed as part of the Financial Statements included in Item 1 of this Form N-CSR, as applicable.

ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

**FRANKLIN TEMPLETON EMERGING MARKETS EQUITY GROUP**

Proxy Voting Policies & Procedures

An SEC Compliance Rule Policy and Procedures\*

**RESPONSIBILITY OF THE INVESTMENT MANAGERS TO VOTE PROXIES**

Franklin Templeton Emerging Markets Equity Group, a separate investment group within Franklin Templeton, comprised of investment personnel from the SEC-registered investment advisers listed on Appendix A (hereinafter individually an "Investment Manager" and collectively the "Investment Managers") have delegated the administrative duties with respect to voting proxies for securities to the Franklin Templeton Proxy Group. Proxy duties consist of disseminating proxy materials and analyses of issuers whose stock is owned by any client (including both investment companies and any separate accounts managed by the Investment Managers) that has either delegated proxy voting administrative responsibility to the Investment Managers or has asked for information and/or recommendations on the issues to be voted. The Investment Managers will inform advisory clients that have not delegated the voting responsibility but that have requested voting advice about the Investment Managers' views on such proxy votes. The Proxy Group also provides these services to other advisory affiliates of the Investment Managers.

The Proxy Group will process proxy votes on behalf of, and the Investment Managers vote proxies solely in the best interests of, separate account clients, the Investment Managers'-managed investment company shareholders, or shareholders of funds that have appointed Franklin Templeton International Services S.à.r.l. ("FTIS S.à.r.l.") as the Management Company, provided such funds or clients have properly delegated such responsibility in writing, or, where employee benefit plan assets subject to the Employee Retirement Income Security Act of 1974, as amended, are involved ("ERISA accounts"), in the best interests of the plan participants and beneficiaries (collectively, "Advisory Clients"), unless (i) the power to vote has been specifically retained by the named fiduciary in the documents in which the named fiduciary appointed the Investment Managers or (ii) the documents otherwise expressly prohibit the Investment Managers from voting proxies. The Investment Managers recognize that the exercise of voting rights on securities held by ERISA plans for which the Investment Managers have voting responsibility is a fiduciary duty that must be exercised with care, skill, prudence and diligence.

In certain circumstances, Advisory Clients are permitted to direct their votes in a solicitation pursuant to the Investment Management Agreement. An Advisory Client that wishes to direct its vote shall give reasonable prior written notice to the Investment Managers indicating such intention and provide written instructions directing the Investment Managers or the Proxy Group to vote regarding the solicitation. Where such prior written notice is received, the Proxy Group will vote proxies in accordance with such written notification received from the Advisory Client.

The Investment Managers have adopted and implemented Proxy Voting Policies and Procedures ("Proxy Policies") that they believe are reasonably designed to ensure that proxies are voted in the best interest of Advisory Clients in accordance with their fiduciary duties and rule 206(4)-6 under the Investment Advisers Act of 1940. To the extent that the Investment Managers have a subadvisory agreement with an affiliated investment manager (the "Affiliated Subadviser") with respect to a particular Advisory Client, the Investment Managers may delegate proxy voting responsibility to the Affiliated Subadviser. The Investment Managers may also delegate proxy voting responsibility to a subadviser that is not an Affiliated Subadviser in certain limited situations as disclosed to fund shareholders (e.g., where an Investment Manager to a pooled investment vehicle has engaged a subadviser that is not an Affiliated Subadviser to manage all or a portion of the assets).

*<sup>\*</sup>* <sup>Rule 38a-1 under the Investment Company Act of 1940 ("1940 Act") and Rule 206(4)-7 under the Investment Advisers Act of 1940 ("Advisers Act") (together the "Compliance Rule") require registered investment companies and registered investment advisers to, among other things, adopt and implement written policies and procedures reasonably designed to prevent violations of the federal securities laws ("Compliance Rule Policies and Procedures").</sup>

**HOW THE INVESTMENT MANAGERS VOTE PROXIES**

**Proxy Services**

All proxies received by the Proxy Group will be voted based upon the Investment Managers' instructions and/or policies. To assist it in analyzing proxies of equity securities, the Investment Managers subscribe to Institutional Shareholder Services Inc. ("ISS"), an unaffiliated third-party corporate governance research service that provides in-depth analyses of shareholder meeting agendas and vote recommendations. In addition, the Investment Managers subscribe to ISS's Proxy Voting Service and Vote Disclosure Service. These services include receipt of proxy ballots, custodian bank relations, account maintenance, vote execution, ballot reconciliation, vote record maintenance, comprehensive reporting capabilities, and vote disclosure services. Also, the Investment Managers subscribe to Glass, Lewis & Co., LLC ("Glass Lewis"), an unaffiliated third-party analytical research firm, to receive analyses and vote recommendations on the shareholder meetings of publicly held U.S. companies, as well as a limited subscription to its international research.

For accounts managed by the Templeton Global Equity Group ("TGEG"), in making voting decisions, the Investment Managers may consider Glass Lewis's proxy voting guidelines, ISS's guidelines, and TGEG's custom sustainability guidelines, where appropriate. Although analyses provided by ISS, Glass Lewis, and/or another independent third-party proxy service provider (each a "Proxy Service") are thoroughly reviewed and considered in making a final voting decision, the Investment Managers do not consider recommendations from a Proxy Service or any third-party to be determinative of the Investment Managers' ultimate decision. Rather, the Investment Managers exercise their independent judgment in making voting decisions. As a matter of policy, the officers, directors and employees of the Investment Managers and the Proxy Group will not be influenced by outside sources whose interests conflict with the interests of Advisory Clients.

For ease of reference, the Proxy Policies often refer to all Advisory Clients. However, our processes and practices seek to ensure that proxy voting decisions are suitable for individual Advisory Clients. In some cases, the Investment Managers' evaluation may result in an individual Advisory Client or Investment Manager voting differently, depending upon the nature and objective of the fund or account, the composition of its portfolio, whether the Investment Manager has adopted a specialty or custom voting policy, and other factors.

**Proxy Services**

Certain of the Investment Managers' separate accounts or funds (or a portion thereof) are included under Franklin Templeton Investment Solutions ("FTIS"), a separate investment group within Franklin Templeton, and employ a quantitative strategy.

For such accounts, FTIS's proprietary methodologies rely on a combination of quantitative, qualitative, and behavioral analysis rather than fundamental security research and analyst coverage that an actively-managed portfolio would ordinarily employ. Accordingly, absent client direction, in light of the high number of positions held by such accounts and the considerable time and effort that would be required to review proxy statements and ISS or Glass Lewis recommendations, the Investment Manager may review ISS's guidelines'' or Glass Lewis's US guidelines (the "ISS and Glass Lewis Proxy Voting Guidelines") and determine, consistent with the best interest of its clients, to provide standing instructions to the Proxy Group to vote proxies according to the recommendations of ISS or Glass Lewis.

In addition, the Investment Managers may request in-house voting research from Franklin Templeton's Stewardship Team (FT Stewardship). FT Stewardship provides customized research on specific corporate governance issues that is tailored to the investment manager and corporate engagement undertaken. This

research may include opinions on voting decisions; however, there is no obligation or inference for the Investment Manager to formally vote in line with these opinions. This research supports the independent vote decision making process, and may reduce reliance on third-party advice for certain votes.

The Investment Manager, however, retains the ability to vote a proxy differently than ISS or Glass Lewis recommends if the Investment Manager determines that it would be in the best interests of Advisory Clients.

**Conflicts of Interest**

All conflicts of interest will be resolved in the best interests of the Advisory Clients. The Investment Managers are affiliates of a large, diverse financial services firm with many affiliates and make their best efforts to mitigate conflicts of interest. However, as a general matter, the Investment Managers take the position that relationships between certain affiliates that do not use the "Franklin Templeton" name ("Independent Affiliates") and an issuer (e.g., an investment management relationship between an issuer and an Independent Affiliate) do not present a conflict of interest for an Investment Manager in voting proxies with respect to such issuer because: (i) the Investment Managers operate as an independent business unit from the Independent Affiliate business units, and (ii) informational barriers exist between the Investment Managers and the Independent Affiliate business units.

Material conflicts of interest could arise in a variety of situations, including as a result of the Investment Managers' or an affiliate's (other than an Independent Affiliate as described above): (i) material business relationship with an issuer or proponent, (ii) direct or indirect pecuniary interest in an issuer or proponent; or (iii) significant personal or family relationship with an issuer or proponent. Material conflicts of interest are identified by the Proxy Group based upon analyses of client, distributor, broker dealer, and vendor lists, information periodically gathered from directors and officers, and information derived from other sources, including public filings. The Proxy Group gathers and analyzes this information on a best-efforts basis, as much of this information is provided directly by individuals and groups other than the Proxy Group, and the Proxy Group relies on the accuracy of the information it receives from such parties.

Nonetheless, even though a potential conflict of interest between the Investment Managers or an affiliate (other than an Independent Affiliate as described above) and an issuer may exist: (1) the Investment Managers may vote in opposition to the recommendations of an issuer's management even if contrary to the recommendations of a third-party proxy voting research provider; (2) if management has made no recommendations, the Proxy Group may defer to the voting instructions of the Investment Managers; and (3) with respect to shares held by Franklin Resources, Inc. or its affiliates for their own corporate accounts, such shares may be voted without regard to these conflict procedures.

Otherwise, in situations where a material conflict of interest is identified between the Investment Managers or one of its affiliates (other than Independent Affiliates) and an issuer, the Proxy Group may vote consistent with the voting recommendation of a Proxy Service or send the proxy directly to the relevant Advisory Clients with the Investment Managers' recommendation regarding the vote for approval. To address certain affiliate conflict situations, the Investment Managers will employ pass-through voting or mirror voting when required pursuant to a fund's governing documents or applicable law.

Where the Proxy Group refers a matter to an Advisory Client, it may rely upon the instructions of a representative of the Advisory Client, such as the board of directors or trustees, a committee of the board, or an appointed delegate in the case of a U.S. registered investment company, a conducting officer in the case of a fund that has appointed FTIS S.à.r.l as its Management Company, the Independent Review Committee for Canadian investment funds, or a plan administrator in the case of an employee benefit plan. A quorum of the board of directors or trustees or of a committee of the board can be reached by a majority of members, or a majority of non-recused members. The Proxy Group may determine to vote all shares held by Advisory Clients of the Investment Managers and affiliated Investment Managers (other than Independent Affiliates) in accordance with the instructions of one or more of the Advisory Clients.

The Investment Managers may also decide whether to vote proxies for securities deemed to present conflicts of interest that are sold following a record date, but before a shareholder meeting date. The Investment Managers may consider various factors in deciding whether to vote such proxies, including the Investment Managers' long-term view of the issuer's securities for investment, or it may defer the decision to vote to the applicable Advisory Client. The Investment Managers also may be unable to vote, or choose not to vote, a proxy for securities deemed to present a conflict of interest for any of the reasons outlined in the first paragraph of the section of these policies entitled "Proxy Procedures."

**Weight Given Management Recommendations**

One of the primary factors the Investment Managers consider when determining the desirability of investing in a particular company is the quality and depth of that company's management. Accordingly, the recommendation of management on any issue is a factor that the Investment Managers consider in determining how proxies should be voted. However, the Investment Managers do not consider recommendations from management to be determinative of the Investment Managers' ultimate decision. Each issue is considered on its own merits, and the Investment Managers will not support the position of a company's management in any situation where it determines that the ratification of management's position would adversely affect the investment merits of owning that company's shares.

**Engagement with Issuers**

The Investment Managers believe that engagement with issuers is important to good corporate governance and to assist in making proxy voting decisions. The Investment Managers may engage with issuers to discuss specific ballot items to be voted on in advance of an annual or special meeting to obtain further information or clarification on the proposals. The Investment Managers may also engage with management on a range of issues throughout the year.

**THE PROXY GROUP** 

The Proxy Group's 'full-time staff members and support staff are devoted to proxy voting administration and oversight and providing support and assistance where needed. On a daily basis, the Proxy Group will review each proxy upon receipt as well as any agendas, materials and recommendations that they receive from a Proxy Service or other sources. The Proxy Group maintains a record of all shareholder meetings that are scheduled for companies whose securities are held by the Investment Managers' managed funds and accounts. For each shareholder meeting, a member of the Proxy Group will consult with the research analyst that follows the security and provide the analyst with the agenda, analyses of one or more Proxy Services, recommendations and any other information provided to the Proxy Group. Except in situations identified as presenting material conflicts of interest, the Investment Managers' research analyst and relevant portfolio manager(s) are responsible for making the final voting decision based on their review of the agenda, analyses of one or more Proxy Services, proxy statements, their knowledge of the company and any other information publicly available.

In situations where the Investment Managers have not responded with vote recommendations to the Proxy Group by the deadline date, the Proxy Group may vote consistent with the vote recommendations of a Proxy Service. Except in cases where the Proxy Group is voting consistent with the voting recommendation of a Proxy Service, the Proxy Group must obtain voting instructions from the Investment Managers' research analysts, relevant portfolio manager(s), legal counsel and/or the Advisory Client prior to submitting the vote. In the event that an account holds a security that an Investment Manager did not purchase on its behalf, and the Investment Manager does not normally consider the security as a potential investment for other accounts, the Proxy Group may vote consistent with the voting recommendations of a Proxy Service or take no action on the meeting.

**PROXY ADMINISTRATION PROCEDURES**

**Situations Where Proxies Are Not Voted**

The Proxy Group is fully cognizant of its responsibility to process proxies and maintain proxy records as may be required by relevant rules and regulations. In addition, the Investment Managers understand their fiduciary duty to vote proxies and that proxy voting decisions may affect the value of shareholdings. Therefore, the Investment Managers will generally attempt to process every proxy they receive for all domestic and foreign securities.

However, there may be situations in which the Investment Managers may be unable to successfully vote a proxy, or may choose not to vote a proxy, such as where: (i) a proxy ballot was not received from the custodian bank; (ii) a meeting notice was received too late; (iii) there are fees imposed upon the exercise of a vote and it is determined that such fees outweigh the benefit of voting; (iv) there are legal encumbrances to voting, including blocking restrictions in certain markets that preclude the ability to dispose of a security if an Investment Manager votes a proxy or where the Investment Manager is prohibited from voting by applicable law, economic or other sanctions, or other regulatory or market requirements, including but not limited to, effective Powers of Attorney; (v) additional documentation or the disclosure of beneficial owner details is required; (vi) the Investment Managers held shares on the record date but has sold them prior to the meeting date; (vii) the Advisory Client held shares on the record date, but the Advisory Client closed the account prior to the meeting date; (viii) a proxy voting service is not offered by the custodian in the market; (ix) due to either system error or human error, the Investment Managers' intended vote is not correctly submitted; (x) the Investment Managers believe it is not in the best interest of the Advisory Client to vote the proxy for any other reason not enumerated herein; or (xi) a security is subject to a securities lending or similar program that has transferred legal title to the security to another person.

**Rejected Votes** 

Even if the Investment Managers use reasonable efforts to vote a proxy on behalf of their Advisory Clients, such vote or proxy may be rejected because of (a) operational or procedural issues experienced by one or more third parties involved in voting proxies in such jurisdictions; (b) changes in the process or agenda for the meeting by the issuer for which the Investment Managers do not have sufficient notice; or (c) the exercise by the issuer of its discretion to reject the vote of the Investment Managers. In addition, despite the best efforts of the Proxy Group and its agents, there may be situations where the Investment Managers' votes are not received, or properly tabulated, by an issuer or the issuer's agent.

**Securities on Loan** 

The Investment Managers or their affiliates may, on behalf of one or more of the proprietary registered investment companies advised by the Investment Managers or their affiliates, make efforts to recall any security on loan where the Investment Manager or its affiliates (a) learn of a vote on an event that may materially affect a security on loan and (b) determine that it is in the best interests of such proprietary registered investment companies to recall the security for voting purposes. The ability to timely recall shares is not entirely within the control of the Investment Managers. Under certain circumstances, the recall of shares in time for such shares to be voted may not be possible due to applicable proxy voting record dates or other administrative considerations.

**Split Voting**

There may be instances in certain non-U.S. markets where split voting is not allowed. Split voting occurs when a position held within an account is voted in accordance with two differing instructions. Some markets and/or issuers only allow voting on an entire position and do not accept split voting. In certain cases, when more than one Franklin Templeton investment manager has accounts holding shares of an issuer that are held in an omnibus structure, the Proxy Group will seek direction from an appropriate representative of the Advisory

Client with multiple Investment Managers (such as a conducting officer of the Management Company in the case of a SICAV), or the Proxy Group will submit the vote based on the voting instructions provided by the Investment Manager with accounts holding the greatest number of shares of the security within the omnibus structure.

**Bundled Items**

If several issues are bundled together in a single voting item, the Investment Managers will assess the total benefit to shareholders and the extent that such issues should be subject to separate voting proposals.

**PROCEDURES FOR MEETINGS INVOLVING FIXED INCOME SECURITIES & PRIVATELY HELD ISSUERS**

From time to time, certain custodians may process events for fixed income securities through their proxy voting channels rather than corporate action channels for administrative convenience. In such cases, the Proxy Group will receive ballots for such events on the ISS voting platform. The Proxy Group will solicit voting instructions from the Investment Managers for each account or fund involved. If the Proxy Group does not receive voting instructions from the Investment Managers, the Proxy Group will take no action on the event. The Investment Managers may be unable to vote a proxy for a fixed income security, or may choose not to vote a proxy, for the reasons described under the section entitled "Proxy Procedures."

In the rare instance where there is a vote for a privately held issuer, the decision will generally be made by the relevant portfolio managers or research analysts.

The Proxy Group will monitor such meetings involving fixed income securities or privately held issuers for conflicts of interest in accordance with these procedures. If a fixed income or privately held issuer is flagged as a potential conflict of interest, the Investment Managers may nonetheless vote as it deems in the best interests of its Advisory Clients. The Investment Managers will report such decisions on an annual basis to Advisory Clients as may be required.

**Appendix A**

These Proxy Policies apply to accounts managed by personnel within Franklin Templeton Emerging Markets Equity Group, which includes the following Investment Managers:

Franklin Templeton Investment Management Limited

Templeton Asset Management Ltd.

Franklin Templeton Investments (ME) Limited

ITEM 13. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

(a)(1) As of February 28, 2026, the portfolio managers of the Fund are as follows:

**Nicholas Chui, CFA,** has been the lead portfolio manager of the Fund since May 2023. He joined Franklin Templeton in April 2023. Prior to joining Franklin Templeton, Mr. Chui was a portfolio manager focused on China and Asia equity strategies and a research pod leader at BlackRock.

**Erik Mok, CFA,** has been a portfolio manager of the Fund since 2020. He joined Franklin Templeton in 1998.

Effective April 30, 2025, **Tony Sun** has been added as a portfolio manager of the Fund.

(a)(2) This section reflects information about the portfolio managers as of the fiscal year ended December 31, 2025.

The following table shows the number of other accounts managed by each portfolio manager and the total assets in the accounts managed within each category:

 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Name | Number of Other Registered Investment Companies Managed | Assets of Other Registered Investment Companies Managed<br> (x $1 million) | Number of Other Pooled Investment Vehicles Managed<sup>1</sup> | Assets of Other Pooled Investment Vehicles Managed (x $1 million) <sup>1</sup> | Number of Other Accounts Managed<sup>1</sup> | Assets of Other Accounts Managed<br> (x $1 million) <sup>1</sup> |
| Nicholas Chui | 1 | 328.3 | 6 | 433.2 | 1 | 1610.1 |
| Erik Mok | 1 | 328.3 | 8 | 2334.7 | 4 | 1894.8 |
| Tony Sun | 1 | 328.3 | 3 | 358.5 | 0 | 0 |

---

 

*1 . The various pooled investment vehicles and accounts listed are managed by a team of investment professionals. Accordingly, the individual manager listed would not be solely responsible for managing such listed amounts.*

Portfolio managers that provide investment services to the Fund may also provide services to a variety of other investment products, including other funds, institutional accounts and private accounts. The advisory fees for some of such other products and accounts may be different than that charged to the Fund but does not include performance based compensation. This may result in fees that are higher (or lower) than the advisory fees paid by the Fund. As a matter of policy, each fund or account is managed solely for the benefit of the beneficial owners thereof. As discussed below, the separation of the trading execution function from the portfolio management function and the application of objectively based trade allocation procedures help to mitigate potential conflicts of interest that may arise as a result of the portfolio managers managing accounts with different advisory fees.

*Conflicts.* The management of multiple funds, including the Fund, and accounts may also give rise to potential conflicts of interest if the funds and other accounts have different objectives, benchmarks, time horizons, and fees as the portfolio manager must allocate his or her time and investment ideas across multiple funds and accounts. The investment manager seeks to manage such competing interests for the time and attention of portfolio managers by having portfolio managers focus on a particular investment discipline. Most other accounts managed by a portfolio manager are managed using the same investment strategies that are used in connection with the management of the Fund. Accordingly, portfolio holdings, position sizes, and industry and sector exposures tend to be similar across similar portfolios, which may minimize the potential for conflicts of interest. As noted above, the separate management of the trade execution and valuation functions from the portfolio management process also helps to reduce potential conflicts of interest. However, securities selected for funds or accounts other than the Fund may outperform the securities selected for the Fund. Moreover, if a portfolio manager identifies a limited investment opportunity that may be suitable for more than one fund or other account, the Fund may not be able to take full advantage of that opportunity due to an allocation of that opportunity across all eligible funds and other accounts. The investment manager seeks to manage such potential conflicts by using procedures intended to provide a fair allocation of buy and sell opportunities among funds and other accounts.

The structure of a portfolio manager's compensation may give rise to potential conflicts of interest. A portfolio manager's base pay and bonus tend to increase with additional and more complex responsibilities that include increased assets under management. As such, there may be a relationship between a portfolio manager's marketing or sales efforts and his or her bonus.

Finally, the management of personal accounts by a portfolio manager may give rise to potential conflicts of interest. While the funds and the investment manager have adopted a code of ethics which they believe contains provisions designed to prevent a wide range of prohibited activities by portfolio managers and others with respect to their personal trading activities, there can be no assurance that the code of ethics addresses all individual conduct that could result in conflicts of interest.

The investment manager and the Fund have adopted certain compliance procedures that are designed to address these, and other, types of conflicts. However, there is no guarantee that such procedures will detect each and every situation where a conflict arises.

*Compensation.* The investment manager seeks to maintain a compensation program that is competitively positioned to attract, retain and motivate top-quality investment professionals. Portfolio managers receive a base salary, a cash incentive bonus opportunity, an equity compensation opportunity, and a benefits package. Portfolio manager compensation is reviewed annually, and the level of compensation is based on individual performance, the salary range for a portfolio manager's level of responsibility and Franklin Templeton guidelines. Portfolio managers are provided no financial incentive to favor one fund or account over another. Each portfolio manager's compensation consists of the following three elements:

**Base salary** Each portfolio manager is paid a base salary.

**Annual bonus** Annual bonuses are structured to align the interests of the portfolio manager with those of the Fund's shareholders. Each portfolio manager is eligible to receive an annual bonus. Bonuses generally are split between cash (50% to 65%) and restricted shares of Resources stock (17.5% to 25%) and mutual fund shares (17.5% to 25%). The deferred equity-based compensation is intended to build a vested interest of the portfolio manager in the financial performance of both Resources and mutual funds advised by the investment manager. The bonus plan is intended to provide a competitive level of annual bonus compensation that is tied to the portfolio manager achieving consistently strong investment performance, which aligns the financial incentives of the portfolio manager and Fund shareholders. The Chief Investment Officer of the investment manager and/or other officers of the investment manager, with responsibility for the Fund, have discretion in the granting of annual bonuses to portfolio managers in accordance with Franklin Templeton guidelines. The following factors are generally used in determining bonuses under the plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Investment performance.* Primary consideration is given to the historic
 investment performance over the 1, 3 and 5 preceding years of all accounts managed by the portfolio manager. The pre-tax performance of
 each fund managed is measured relative to a relevant peer group and/or applicable benchmark as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Non-investment performance.* The more qualitative contributions of the portfolio
 manager to the investment manager's business and the investment management team, including professional knowledge, productivity,
 responsiveness to client needs and communication, are evaluated in determining the amount of any bonus award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Responsibilities.* The characteristics and complexity of funds managed
 by the portfolio manager are factored in the investment manager's appraisal.

**Additional long-term equity-based compensation** Portfolio managers may also be awarded restricted shares or units of Resources stock or restricted shares or units of one or more mutual funds. Awards of such deferred equity-based compensation typically vest over time, so as to create incentives to retain key talent.

**Benefits** Portfolio managers also participate in benefit plans and programs available generally to all employees of the investment manager.

*Ownership of Fund shares.* The investment manager has a policy of encouraging portfolio managers to invest in the funds they manage. Exceptions arise when, for example, a fund is closed to new investors or when tax considerations or jurisdictional constraints cause such an investment to be inappropriate for the portfolio manager. The following is the dollar range of Fund shares beneficially owned by the portfolio managers (such amounts may change from time to time):

---

| | |
|:---|:---|
| Portfolio Manager | Dollar Range of Fund Shares |
| Portfolio Manager | Beneficially Owned |
| Nicholas Chui | None |
| Erik Mok | None |
| Tony Sun | None |

---

Note: Because the portfolio manager is a foreign national, they do not hold shares in this U.S. registered fund, however they own shares in other similar Franklin Templeton funds managed by them, registered offshore and appropriate for foreign nationals.

Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  |  | (d) |
| Period | (a)<br> Total Number of Shares Purchased | (b)<br> Average Price Paid per Share | (c)<br> Total Number of Shares<br> Purchased as Part of Publicly Announced Plans or Program | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs |
| January 1 – January 31, 2025 | - | - | - | 2604719 |
| February 1 – February 28, 2025 | - | - | - | 2604719 |
| March 1 – March 31, 2025 | 21804 | $9.71 | 21804 | 2582915 |
| April 1 – April 30, 2025 | 59196 | $8.80 | 59196 | 2523719 |
| May 1 – May 31, 2025 | - | - | - | 2523719 |
| June 1 – June 30, 2025 | - | - | - | 2523719 |
| July 1 – July 31, 2025 | - | - | - | 2523719 |
| August 1 – August 31, 2025 | - | - | - | 2523719 |
| September 1 – September 30, 2025 | - | - | - | 2523719 |
| October 1 – October 31, 2025 | 20000 | $11.56 | 20000 | 2503719 |
| November 1 – November 30, 2025 | 16000 | $11.09 | 16000 | 2487719 |
| December 1 – December 31, 2025 | 20000 | $11.40 | 20000 | 2467719 |
| Total | 137000 |  | 137000 |  |

---

---

| | |
|:---|:---|
| ITEM 15. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |

---

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

ITEM 16. CONTROLS AND PROCEDURES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Registrant's chief executive officer and principal financial officer
 have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company
 Act of 1940, as amended (the "1940 Act")) are effective as of a date within 90 days of the filing date of this report that
 includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule
 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During the period covered by this report, the Registrant transitioned to a new
 third-party service provider who performs certain accounting and administrative services for the Registrant that are subject to Franklin
 Templeton's oversight.

Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.

**Securities lending agent** The board of trustees has approved the Fund's participation in a securities lending program. Under the securities lending program, JP Morgan Chase Bank serves as the Fund's securities lending agent.

For the year ended December 31, 2025, the income earned by the Fund as well as the fees and/or compensation paid by the Fund in dollars pursuant to a securities lending agreement between the Trust with respect to the Fund and the Securities Lending Agent were as follows (figures may differ from those shown in shareholder reports due to time of availability and use of estimates):

---

| | |
|:---|:---|
| **Gross income earned by the Fund from securities lending activities** | $68123 |
| *Fees and/or compensation paid by the Fund for securities lending activities and related services* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees paid to Securities Lending Agent from revenue split | $3420 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) not included in a revenue split | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administrative fees not included in a revenue split | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indemnification fees not included in a revenue split | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rebate (paid to borrower) | $25200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other fees not included above | $321 |
| **Aggregate fees/compensation paid by the Fund for securities lending activities** | $28941 |
| **Net income from securities lending activities** | $39182 |

---

ITEM 18. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable.

ITEM 19. EXHIBITS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(a) (1) Code of Ethics attached hereto.](tdfi-efp22451_ex99code.htm)

Exhibit 99.CODE ETH

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(a) (3) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.](tdfi-efp22451_ex99cert.htm)

Exhibit 99.CERT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.](tdfi-efp22451_ex99906cert.htm)

Exhibit 99.906CERT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(c) Pursuant to the Securities and Exchange Commission's Order granting relief from Section 19(b) of the Investment Company Act of 1940, the 19(a) Notices to Beneficial Owners are attached hereto as Exhibit.](tdfi-efp22451_ex99c.htm)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto duly authorized.

**Templeton Dragon Fund, Inc.**

---

| | |
|:---|:---|
| By: | /s/ Christopher Kings |
|  | Christopher Kings |
|  | Chief Executive Officer – Finance and Administration |
| Date: | March 02, 2026 |

---

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | |
|:---|:---|
| By: | /s/ Christopher Kings |
|  | Christopher Kings |
|  | Chief Executive Officer – Finance and Administration |
| Date: | March 02, 2026 |
| By: | /s/ Jeffrey White |
|  | Jeffrey White |
|  | Chief Financial Officer, Chief Accounting Officer and Treasurer |
| Date: | March 02, 2026 |

---

## Ex-99.Code

**Code of Ethics for Principal Executives & Senior Financial Officers**

---

| | |
|:---|:---|
| **Procedures** | &nbsp;&nbsp;&nbsp;Revised [September 27, 2024] |

---

**FRANKLIN TEMPLETON AFFILIATED FUNDS**

**CODE OF ETHICS FOR PRINCIPAL EXECUTIVES AND**

**SENIOR FINANCIAL OFFICERS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Covered Officers
 and Purpose of the Code

This code of ethics (the "Code") applies to the Principal Executive Officers, Principal Financial Officer and Principal Accounting Officer (the "Covered Officers") of each investment company advised by a Franklin Resources subsidiary and that is registered with the United States Securities & Exchange Commission ("SEC") (collectively, "FT Funds") for the purpose of promoting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Honest
 and ethical conduct, including the ethical resolution of actual or apparent conflicts of
 interest between personal and professional relationships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Full,
 fair, accurate, timely and understandable disclosure in reports and documents that a registrant
 files with, or submits to, the SEC and in other public communications made by or on behalf
 of the FT Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compliance
 with applicable laws and governmental rules and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The
 prompt internal reporting of violations of the Code to an appropriate person or persons identified
 in the Code; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Accountability
 for adherence to the Code.

Each Covered Officer will be expected to adhere to a high standard of business ethics and must be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

*\** Rule 38a-1 under the Investment Company Act of 1940 ("1940 Act") and Rule 206(4)-7 under the Investment Advisers Act of 1940 ("Advisers Act") (together the "Compliance Rule") require registered investment companies and registered investment advisers to, among other things, adopt and implement written policies and procedures reasonably designed to prevent violations of the federal securities laws ("Compliance Rule Policies and Procedures").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. Other Policies
 and Procedures

This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder.

Franklin Resources, Inc. has separately adopted the <u>Code of Ethics and Business Conduct</u> ("Business Conduct"), which is applicable to all officers, directors and employees of Franklin Resources, Inc., including Covered Officers. It summarizes the values, principles and business practices that guide the employee's business conduct and also provides a set of basic principles to guide officers, directors and employees regarding the minimum ethical requirements expected of them. It supplements the values, principles and business conduct identified in the Code and other existing employee policies.

Additionally, the Franklin Templeton Funds have separately adopted the <u>FTI Personal Investments and Insider Trading Policy</u> governing personal securities trading and other related matters. The Code for Insider Trading provides for separate requirements that apply to the Covered Officers and others, and therefore is not part of this Code.

Insofar as other policies or procedures of Franklin Resources, Inc., the Funds, the Funds' adviser, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. Please review these other documents or consult with the Legal Department if have questions regarding the applicability of these policies to you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. Covered
 Officers Should Handle Ethically Actual and Apparent Conflicts of Interest

**Overview.** A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his or her service to, the FT Funds. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of a position with the FT Funds.

Certain conflicts of interest arise out of the relationships between Covered Officers and the FT Funds and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the FT Funds because of their status as "affiliated persons" of the FT Funds. The FT Funds' and the investment advisers' compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the FT Funds, the investment advisers and the fund administrator of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the FT Funds, for the adviser, the administrator, or for all three), be involved in establishing policies and implementing decisions that will have different effects on the

adviser, administrator and the FT Funds. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the FT Funds, the adviser, and the administrator and is consistent with the performance by the Covered Officers of their duties as officers of the FT Funds. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the FT Funds' Boards of Directors ("Boards") that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the FT Funds.

Each Covered Officer must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Not
 use his or her personal influence or personal relationships improperly to influence investment
 decisions or financial reporting by the FT Funds whereby the Covered Officer would benefit
 personally to the detriment of the FT Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Not
 cause the FT Funds to take action, or fail to take action, for the individual personal benefit
 of the Covered Officer rather than the benefit of the FT Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Not
 retaliate against any other Covered Officer or any employee of the FT Funds or their affiliated
 persons for reports of potential violations that are made in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Report
 at least annually the following affiliations or other relationships:<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all
 directorships for public companies and all companies that are required to file reports with
 the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any
 direct or indirect business relationship with any independent directors of the FT Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any
 direct or indirect business relationship with any independent public accounting firm (which
 are not related to the routine issues related to the firm's service as the Covered
 Persons accountant); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any
 direct or indirect interest in any transaction with any FT Fund that will benefit the officer
 (not including benefits derived from the advisory, sub-advisory, distribution or service
 agreements with affiliates of Franklin Resources).

These reports will be reviewed by the Legal Department for compliance with the Code.

There are some conflict of interest situations that should always be approved in writing by Franklin Resources General Counsel or Deputy General Counsel, if material. Examples of these include<sup>2</sup>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Service
 as a director on the board of any public or private Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The
 receipt of any gifts in excess of $100 from any person, from any corporation or association.

<sup>1</sup> Reporting of these affiliations or other relationships shall be made by completing the annual Directors and Officers Questionnaire and returning the questionnaire to Franklin Resources Inc, General Counsel or Deputy General Counsel.

<sup>2</sup> Any activity or relationship that would present a conflict for a Covered Officer may also present a conflict for the Covered Officer if a member of the Covered Officer's immediate family engages in such an activity or has such a relationship. The Covered Person should also obtain written approval by FT's General Counsel in such situations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The
 receipt of any entertainment from any Company with which the FT Funds has current or prospective
 business dealings unless such entertainment is business related, reasonable in cost, appropriate
 as to time and place, and not so frequent as to raise any question of impropriety. Notwithstanding
 the foregoing, the Covered Officers must obtain prior approval from the Franklin Resources
 General Counsel for any entertainment with a value in excess of $1000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any
 ownership interest in, or any consulting or employment relationship with, any of the FT Fund's
 service providers, other than an investment adviser, principal underwriter, administrator
 or any affiliated person thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A
 direct or indirect financial interest in commissions, transaction charges or spreads paid
 by the FT Funds for effecting portfolio transactions or for selling or redeeming shares other
 than an interest arising from the Covered Officer's employment, such as compensation
 or equity ownership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Franklin
 Resources General Counsel or Deputy General Counsel, or the Chief Compliance Officer, will
 provide a report to the FT Funds Audit Committee of any approvals granted at the next regularly
 scheduled meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. Disclosure
 and Compliance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each
 Covered Officer should familiarize himself with the disclosure requirements generally applicable
 to the FT Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each
 Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts
 about the FT Funds to others, whether within or outside the FT Funds, including to the FT
 Funds' directors and auditors, and to governmental regulators and self- regulatory
 organizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each
 Covered Officer should, to the extent appropriate within his or her area of responsibility,
 consult with other officers and employees of the FT Funds, the FT Fund's adviser and
 the administrator with the goal of promoting full, fair, accurate, timely and understandable
 disclosure in the reports and documents the FT Funds file with, or submit to, the SEC and
 in other public communications made by the FT Funds; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• It
 is the responsibility of each Covered Officer to promote compliance with the standards and
 restrictions imposed by applicable laws, rules and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. Reporting
 and Accountability

Each Covered Officer must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Upon
 becoming a covered officer affirm in writing to the Board that he or she has received, read,
 and understands the Code (see Exhibit A);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Annually
 thereafter affirm to the Board that he has complied with the requirements of the Code; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Notify
 Franklin Resources' General Counsel or Deputy General Counsel promptly if he or she
 knows of any violation of this Code. Failure to do so is itself is a violation of this Code.

Franklin Resources' General Counsel and Deputy General Counsel are responsible for applying this Code to specific situations in which questions are presented under it and have the authority to interpret this Code in any particular situation.<sup>3</sup> However, the Independent Directors of the respective FT Funds will consider any approvals or waivers<sup>4</sup> sought by any Chief Executive Officers of the Funds.

The FT Funds will follow these procedures in investigating and enforcing this Code:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Franklin
 Resources General Counsel or Deputy General Counsel will take all appropriate action to investigate
 any potential violations reported to the Legal Department;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If,
 after such investigation, the General Counsel or Deputy General Counsel believes that no
 violation has occurred, The General Counsel is not required to take any further action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any
 matter that the General Counsel or Deputy General Counsel believes is a violation will be
 reported to the Independent Directors of the appropriate FT Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If
 the Independent Directors concur that a violation has occurred, it will inform and make a
 recommendation to the Board of the appropriate FT Fund or Funds, which will consider appropriate
 action, which may include review of, and appropriate modifications to, applicable policies
 and procedures; notification to appropriate personnel of the investment adviser or its board;
 or a recommendation to dismiss the Covered Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The
 Independent Directors will be responsible for granting waivers, as appropriate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any
 changes to or waivers of this Code will, to the extent required, are disclosed as provided
 by SEC rules.<sup>5</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VI. Other
 Policies and Procedures

This Code shall be the sole code of ethics adopted by the FT Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the FT Funds, the FT Funds' advisers, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The FTI Personal Investments and Insider Trading Policy, adopted by the FT Funds, FT investment advisers and FT Fund's principal underwriter pursuant to Rule 17j-1 under the Investment Company Act, the Code of Ethics and Business Conduct and more detailed policies and procedures set forth in FT's Employee Handbook are separate requirements applying to the Covered Officers and others, and are not part of this Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VII. Amendments

Any amendments to this Code must be approved or ratified by a majority vote of the FT Funds' Board including a majority of independent directors.

<sup>3</sup> Franklin Resources General Counsel and Deputy General Counsel are authorized to consult, as appropriate, with members of the Audit Committee, counsel to the FT Funds and counsel to the Independent Directors, and are encouraged to do so.

<sup>4</sup> Item 2 of Form N-CSR defines "waiver" as "the approval by the registrant of a material departure from a provision of the code of ethics" and "implicit waiver," which must also be disclosed, as "the registrant's failure to take action within a reasonable period of time regarding a material departure from a provision of the code of ethics that has been made known to an executive officer" of the registrant. See Part X.

<sup>5</sup> See Part X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VIII. Confidentiality

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the FT Funds' Board and their counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IX. Internal
 Use

The Code is intended solely for the internal use by the FT Funds and does not constitute an admission, by or on behalf of any FT Funds, as to any fact, circumstance, or legal conclusion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X. Disclosure
 on Form N-CSR

Item 2 of Form N-CSR requires a registered management investment company to disclose annually whether, as of the end of the period covered by the report, it has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these officers are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, it must explain why it has not done so.

The registrant must also: (1) file with the SEC a copy of the code as an exhibit to its annual report; (2) post the text of the code on its Internet website and disclose, in its most recent report on Form N-CSR, its Internet address and the fact that it has posted the code on its Internet website; or (3) undertake in its most recent report on Form N-CSR to provide to any person without charge, upon request, a copy of the code and explain the manner in which such request may be made. Disclosure is also required of amendments to, or waivers (including implicit waivers) from, a provision of the code in the registrant's annual report on Form N-CSR or on its website. If the registrant intends to satisfy the requirement to disclose amendments and waivers by posting such information on its website, it will be required to disclose its Internet address and this intention.

The Legal Department shall be responsible for ensuring that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a
 copy of the Code is filed with the SEC as an exhibit to each Fund's annual report;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any
 amendments to, or waivers (including implicit waivers) from, a provision of the Code is disclosed
 in the registrant's annual report on Form N-CSR.

In the event that the foregoing disclosure is omitted or is determined to be incorrect, the Legal Department shall promptly file such information with the SEC as an amendment to Form N- CSR.

In such an event, the Fund Chief Compliance Officer shall review the Code and propose such changes to the Code as are necessary or appropriate to prevent reoccurrences.

**Exhibit A**

**ACKNOWLEDGMENT FORM**

**Franklin Templeton Funds Code of Ethics**

**For Principal Executives and Senior Financial Officers**

**Instructions:**

&nbsp;&nbsp;&nbsp;&nbsp;1. Complete
 all sections of this form.

&nbsp;&nbsp;&nbsp;&nbsp;2. Print
 the completed form, sign, and date.

&nbsp;&nbsp;&nbsp;&nbsp;3. Submit
 completed form to FT's General Counsel c/o Code of Ethics Administration within 10
 days of becoming a Covered Officer and by February 15<sup>th</sup> of each subsequent year.

---

| | |
|:---|:---|
| **E-mail:** | Code of Ethics Inquiries & Requests (internal address);<br> lpreclear@franklintempleton.com (external address) |

---

---

| |
|:---|
| **Covered Officer's Name:** |
| **Title:** |
| **Department:** |
| **Location:** |
| **Certification for Year Ending:** |

---

***To: Franklin Resources General Counsel, Legal Department***

I acknowledge receiving, reading and understanding the Franklin Templeton Fund's Code of Ethics for Principal Executive Officers and Senior Financial Officers (the "Code"). I will comply fully with all provisions of the Code to the extent they apply to me during the period of my employment. I further understand and acknowledge that any violation of the Code may subject me to disciplinary action, including termination of employment.

---

| | |
|:---|:---|
| ***Signature*** | ***Date signed*** |

---

## Ex-99.Cert

CERTIFICATIONS PURSUANT TO SECTION 302

EX-99.CERT

**<u>CERTIFICATIONS</u>**

I, Christopher Kings, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I
 have reviewed this report on Form N-CSR of **Templeton Dragon Fund, Inc.**;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact or
 omit to state a material fact necessary to make the statements made, in light of the circumstances
 under which such statements were made, not misleading with respect to the period covered
 by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based
 on my knowledge, the financial statements, and other financial information included in this
 report, fairly present in all material respects the financial condition, results of operations,
 changes in net assets, and cash flows (if the financial statements are required to include
 a statement of cash flows) of the registrant as of, and for, the periods presented in this
 report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The
 registrant's other certifying officers and I are responsible for establishing and maintaining
 disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company
 Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under
 the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures
 to be designed under our supervision, to ensure that material information relating to the
 registrant, including its consolidated subsidiaries, is made known to us by others within
 those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed
 such internal control over financial reporting, or caused such internal control over financial
 reporting to be designed under our supervision, to provide reasonable assurance regarding
 the reliability of financial reporting and the preparation of financial statements for external
 purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated
 the effectiveness of the registrant's disclosure controls and procedures and presented
 in this report our conclusions about the effectiveness of the disclosure controls and procedures,
 as of a date within 90 days prior to the filing date of this report based on such evaluation;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed
 in this report any change in the registrant's internal control over financial reporting
 that occurred during the period covered by this report that has materially affected, or is
 reasonably likely to materially affect, the registrant's internal control over financial
 reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The
 registrant's other certifying officers and I have disclosed to the registrant's
 auditors and the audit committee of the registrant's board of directors (or persons
 performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All
 significant deficiencies and material weaknesses in the design or operation of internal control
 over financial reporting which are reasonably likely to adversely affect the registrant's
 ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any
 fraud, whether or not material, that involves management or other employees who have a significant
 role in the registrant's internal control over financial reporting.

Date: March 02, 2026

---

| |
|:---|
| /s/ Christopher Kings |
| Christopher Kings |
| Executive Officer - Finance and Administration |

---

**<u>CERTIFICATIONS</u>**

I, Jeffrey White, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I
 have reviewed this report on Form N-CSR of **Templeton Dragon Fund, Inc.**;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact or
 omit to state a material fact necessary to make the statements made, in light of the circumstances
 under which such statements were made, not misleading with respect to the period covered
 by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based
 on my knowledge, the financial information included in this report, and the financial statements
 on which the financial information is based, fairly present in all material respects the
 financial condition, results of operations, changes in net assets, and cash flows (if the
 financial statements are required to include a statement of cash flows) of the registrant
 as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The
 registrant's other certifying officers and I are responsible for establishing and maintaining
 disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company
 Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under
 the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures
 to be designed under our supervision, to ensure that material information relating to the
 registrant, including its consolidated subsidiaries, is made known to us by others within
 those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed
 such internal control over financial reporting, or caused such internal control over financial
 reporting to be designed under our supervision, to provide reasonable assurance regarding
 the reliability of financial reporting and the preparation of financial statements for external
 purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated
 the effectiveness of the registrant's disclosure controls and procedures and presented
 in this report our conclusions about the effectiveness of the disclosure controls and procedures,
 as of a date within 90 days prior to the filing date of this report based on such evaluation;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed
 in this report any change in the registrant's internal control over financial reporting
 that occurred during the period covered by this report that has materially affected, or is
 reasonably likely to materially affect, the registrant's internal control over financial
 reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The
 registrant's other certifying officers and I have disclosed to the registrant's
 auditors and the audit committee of the registrant's board of directors (or persons
 performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All
 significant deficiencies and material weaknesses in the design or operation of internal control
 over financial reporting which are reasonably likely to adversely affect the registrant's
 ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any
 fraud, whether or not material, that involves management or other employees who have a significant
 role in the registrant's internal control over financial reporting.

Date: March 02, 2026

---

| |
|:---|
| /s/ Jeffrey White |
| Jeffrey White |
| Chief Financial Officer, Chief Accounting Officer and Treasurer |

---

## Exhibit 99.906

CERTIFICATIONS PURSUANT TO SECTION 906

EX-99.906CERT

**CERTIFICATION**

**Christopher Kings,** Chief Executive Officer – Finance and Administration, and **Jeffrey White,** Chief Financial Officer, Chief Accounting Officer and Treasurer of **Templeton Dragon Fund, Inc.** (the "Registrant"), each certify to the best of their knowledge that:

&nbsp;&nbsp;&nbsp;&nbsp;1. The Registrant's periodic report on Form N-CSR for the period ended **December 31, 2025** (the "Form N-CSR") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

---

| | |
|:---|:---|
| **Chief Executive Officer –** | **Chief Financial Officer, Chief** |
| **Finance and Administration** | **Accounting Officer and Treasurer** |
| Templeton Dragon Fund, Inc. | Templeton Dragon Fund, Inc. |
| /s/ Christopher Kings | /s/ Jeffrey White |
| Christopher Kings | Jeffrey White |
| Date: March 02, 2026 | Date: March 02, 2026 |

---

This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR with the Commission.

## Ex-99.C

**TEMPLETON DRAGON FUND, INC.**

300 S.E. 2<sup>nd</sup> Street

Fort Lauderdale, FL 33301

**FOR IMMEDIATE RELEASE:**

For more information, please contact Franklin Templeton at 1-800-342-5236.

**TEMPLETON DRAGON FUND, INC. ("TDF")**

**ANNOUNCES NOTIFICATION OF SOURCES OF DISTRIBUTIONS**

Fort Lauderdale, Florida, September 29, 2025. Templeton Dragon Fund [NYSE: TDF

]<br>

The Fund's estimated sources of the distribution to be paid on September 30, 2025, and for the fiscal year 2025 year-to-date are as follows:

Estimated Allocations for September Quarterly Distribution:

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; Distribution <br> Per Share  | &nbsp;&nbsp; Net Investment <br> Income  | &nbsp;&nbsp; Net Realized <br> Short-Term Capital<br> Gains  | &nbsp;&nbsp; Net Realized <br> Long-Term Capital<br> Gains  | &nbsp;&nbsp; Return of Capital  |
| &nbsp;&nbsp; $0.1000  | &nbsp;&nbsp; $0.0009 (1%) | &nbsp;&nbsp; $0.0691 (69%) | &nbsp;&nbsp; $0.00 (0%) | &nbsp;&nbsp; $0.0300 (30%) |

---

Cumulative Estimated Allocations fiscal year-to-date as of June 30, 2025, and for the fiscal year ending December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; Distribution <br> Per Share  | &nbsp;&nbsp; Net Investment <br> Income  | &nbsp;&nbsp; Net Realized <br> Short-Term Capital<br> Gains  | &nbsp;&nbsp; Net Realized <br> Long-Term Capital<br> Gains  | &nbsp;&nbsp; Return of Capital  |
| &nbsp;&nbsp; $0.2000  | &nbsp;&nbsp; $0.1460 (73%) | &nbsp;&nbsp; $0.0540 (27%) | &nbsp;&nbsp; $0.00 (0%) | &nbsp;&nbsp; $0.00 (0%) |

---

**<br>Shareholders should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Plan. TDF estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of the TDF distribution to shareholders may be a return of capital. A return of capital may occur, for example, when some or all of the money that a shareholder invested in a Fund is paid back to them. A return of capital distribution does not necessarily reflect TDF's investment performance and should not be confused with 'yield' or 'income'. The amounts and sources of distributions reported herein are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send a Form 1099-DIV to shareholders for the calendar year that will describe how to report the Fund's distributions for federal income tax purposes.**

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; Average Annual Total Return (in relation to the change in net asset value (NAV) for the 5-year period ended on 8/31/2025)<sup>1</sup> | &nbsp;&nbsp; Annualized Distribution Rate (as a percentage of NAV for the current fiscal period through 8/31/2025)<sup>2</sup> | &nbsp;&nbsp;&nbsp; Cumulative Total Return (in relation to the change in NAV for the fiscal period through 8/31/2025)<sup>3</sup> | &nbsp;&nbsp;&nbsp;&nbsp; Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 8/31/2025)<sup>4</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -6.22% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.12% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25.88% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.56% |

---

**Fund Performance and Distribution Rate Information:<br>** 

<br> **1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Average Annual Total Return in relation to NAV represents the compound average of the Annual NAV Total Returns of the Fund for the five-year period ended through August 31, 2025. Annual NAV Total Return is the percentage change in the Fund's NAV over a year, assuming reinvestment of distributions paid.**

**2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

The Annualized Distribution Rate is the current fiscal period's distribution rate annualized as a percentage of the Fund's NAV through August 31, 2025.**

**3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Cumulative Total Return is the percentage change in the Fund's NAV from December 31, 2024 through August 31, 2025, assuming reinvestment of distributions paid.**

**4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

The Cumulative Fiscal Year-To-Date Distribution Rate is the dollar value of distributions for the fiscal period December 31, 2024 through June 30, 2025, as a percentage of the Fund's NAV as of August 31, 2025.**

<br> The Fund's Board of Trustees (the "Board") has authorized a Managed Distribution Plan (the "Plan"), under which the Fund will make quarterly distributions to shareholders at a fixed rate of $0.10 per share. The Plan aims to provide shareholders with consistent quarterly distributions derived from ordinary income and short-term capital gains generated by the Fund's investment portfolio. Additionally, the Plan seeks to narrow the discount between the market price and the net asset value ("NAV") of the Fund's common shares, although success in this regard cannot be guaranteed.

In the event that sufficient distributable income is not available on a quarterly basis, the Fund will distribute long-term capital gains and/or return of capital to maintain its managed distribution rate. A return of capital may occur when some or all of the invested capital is paid back to shareholders. It is important to note that a return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income." Even if the Fund realizes capital gains in the current year, such gains may be offset, in whole or in part, by the Fund's capital loss carryovers from prior years.

The Board may amend the terms of the Plan or terminate the Plan at any time without prior notice to the Fund's shareholders. The amendment or termination of the Plan could have an adverse effect on the market price of the Fund's common shares. The Plan will be subject to periodic review by the Board, including a yearly review of the fixed rate to determine if an adjustment should be made.

**For further information on Templeton Dragon Fund, Inc. please visit our web site at:

www.franklintempleton.com**

**<br>** 

<br> Franklin Resources, Inc. is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton's mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and $1.64 trillion in assets under management as of August 31, 2025. For more information, please visit franklintempleton.com.

#&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; #&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; #

**TEMPLETON DRAGON FUND, INC.**

300 S.E. 2<sup>nd</sup> Street

Fort Lauderdale, FL 33301

**FOR IMMEDIATE RELEASE:**

For more information, please contact Franklin Templeton at 1-800-342-5236.

**TEMPLETON DRAGON FUND, INC. ("TDF")**

**ANNOUNCES NOTIFICATION OF SOURCES OF DISTRIBUTIONS**

Fort Lauderdale, Florida, December 30, 2025. Templeton Dragon Fund [NYSE: TDF]:<br>

The Fund's estimated sources of the distribution to be paid on December 31, 2025, and for the fiscal year 2025 year-to-date are as follows:

Estimated Allocations for December Quarterly Distribution:

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; Distribution <br> Per Share  | &nbsp;&nbsp; Net Investment <br> Income  | &nbsp;&nbsp; Net Realized <br> Short-Term Capital<br> Gains  | &nbsp;&nbsp; Net Realized <br> Long-Term Capital<br> Gains  | &nbsp;&nbsp; Return of Capital  |
| &nbsp;&nbsp; $0.1000  | &nbsp;&nbsp; $0.00 (0%) | &nbsp;&nbsp; $0.1000 (100%) | &nbsp;&nbsp; $0.00 (0%) | &nbsp;&nbsp; $0.00 (0%) |

---

Cumulative Estimated Allocations fiscal year-to-date as of September 30, 2025, and for the fiscal year ending December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; Distribution <br> Per Share  | &nbsp;&nbsp; Net Investment <br> Income  | &nbsp;&nbsp; Net Realized <br> Short-Term Capital<br> Gains  | &nbsp;&nbsp; Net Realized <br> Long-Term Capital<br> Gains  | &nbsp;&nbsp; Return of Capital  |
| &nbsp;&nbsp; $0.3000  | &nbsp;&nbsp; $0.1469 (49%) | &nbsp;&nbsp; $0.1231 (41%) | &nbsp;&nbsp; $0.00 (0%) | &nbsp;&nbsp; $0.0300 (10%) |

---

**<br>Shareholders should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Plan. TDF estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of the TDF distribution to shareholders may be a return of capital. A return of capital may occur, for example, when some or all of the money that a shareholder invested in a Fund is paid back to them. A return of capital distribution does not necessarily reflect TDF's investment performance and should not be confused with 'yield' or 'income'. The amounts and sources of distributions reported herein are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send a Form 1099-DIV to shareholders for the calendar year that will describe how to report the Fund's distributions for federal income tax purposes.**

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; Average Annual Total Return (in relation to the change in net asset value (NAV) for the 5-year period ended on 11/30/2025)<sup>1</sup> | &nbsp;&nbsp; Annualized Distribution Rate (as a percentage of NAV for the current fiscal period through 11/30/2025)<sup>2</sup> | &nbsp;&nbsp;&nbsp; Cumulative Total Return (in relation to the change in NAV for the fiscal period through 11/30/2025)<sup>3</sup> | &nbsp;&nbsp;&nbsp;&nbsp; Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 11/30/2025)<sup>4</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -6.34% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.06% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29.28% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.29% |

---

**Fund Performance and Distribution Rate Information:<br>** 

<br> **1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Average Annual Total Return in relation to NAV represents the compound average of the Annual NAV Total Returns of the Fund for the five-year period ended through November 30, 2025. Annual NAV Total Return is the percentage change in the Fund's NAV over a year, assuming reinvestment of distributions paid.**

**2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

The Annualized Distribution Rate is the current fiscal period's distribution rate annualized as a percentage of the Fund's NAV through November 30, 2025.**

**3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Cumulative Total Return is the percentage change in the Fund's NAV from December 31, 2024 through November 30, 2025, assuming reinvestment of distributions paid.**

**4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

The Cumulative Fiscal Year-To-Date Distribution Rate is the dollar value of distributions for the fiscal period December 31, 2024 through November 30, 2025, as a percentage of the Fund's NAV as of November 30, 2025.**

**<br>** 

<br> The Fund's Board of Trustees (the "Board") has authorized a Managed Distribution Plan (the "Plan"), under which the Fund will make quarterly distributions to shareholders at a fixed rate of $0.10 per share. The Plan aims to provide shareholders with consistent quarterly distributions derived from ordinary income and short-term capital gains generated by the Fund's investment portfolio. Additionally, the Plan seeks to narrow the discount between the market price and the net asset value ("NAV") of the Fund's common shares, although success in this regard cannot be guaranteed.<br>

In the event that sufficient distributable income is not available on a quarterly basis, the Fund will distribute long-term capital gains and/or return of capital to maintain its managed distribution rate. A return of capital may occur when some or all of the invested capital is paid back to shareholders. It is important to note that a return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income." Even if the Fund realizes capital gains in the current year, such gains may be offset, in whole or in part, by the Fund's capital loss carryovers from prior years.<br>

The Board may amend the terms of the Plan or terminate the Plan at any time without prior notice to the Fund's shareholders. The amendment or termination of the Plan could have an adverse effect on the market price of the Fund's common shares. The Plan will be subject to periodic review by the Board, including a yearly review of the fixed rate to determine if an adjustment should be made.

**For further information on Templeton Dragon Fund, Inc. please visit our web site at:

www.franklintempleton.com**

<br> Franklin Resources, Inc. is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton's mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and $1.67 trillion in assets under management as of November 30, 2025. For more information, please visit franklintempleton.com.

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