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Development began in early 1995 alongside Panzer Dragoon II Zwei (1996).

Sega felt an RPG was critical to compete against the PlayStation and Final Fantasy. The player controls Edge, a young mercenary who rides a dragon and encounters a mysterious girl from a vanished civilization. The third entry in the Panzer Dragoon series, it replaced the rail shooter gameplay of the previous games with RPG elements such as random encounters, semi- turn-based battles and free-roaming exploration.

Panzer Dragoon Saga, known in Japan as Azel: Panzer Dragoon RPG, is a 1998 role-playing video game (RPG) developed by Team Andromeda and published by Sega for the Sega Saturn.