Gretel is a potions dragon. She gets her flowers and seeds that are used in her potions from Liz's garden and the garden of Henry Bacon, their neighbor. Once she even used a drop of Zanna's blood in a potion. She mixes seeds and flower petals into certain flower heads to make her potions. Sometimes she will mix the ingredients into a liquid and then dip the flower in it. Often all she has to do is get a person or dragon to smell the potion flower to activate the potion's effects. She has even been shown to understand flowers, getting the listening dragon that sits on the fridge to listen to flower petals from Henry's garden after mixing them with a certain potion.

She was made by Liz for Gwilanna, who instructed that Gretel had the 'Mark of Godith' applied to the base of her tail. Gretel was considered evil for a while, and has even been caged. She is still questioned about her loyalty to the Pennykettle Dragons. She often seems to get annoyed with the Pennykettle Dragons, even though she is one since Liz is the one who made her. Although, she does seem to have an attachment to "Golly", a natural healing dragon made by David. Currently she is Zanna's special dragon since she deserted Gwilanna. She almost shed her fire tear when Grockle was turned to stone at the end of Icefire as well as when Zanna was attacked by evil darkling ravens created on a Farlowe island. Ever since then she has been trying numerous potions to try to bring Grockle back to life. This is why she was caged, as Liz said Grockle would have suffered if put into this world. Groyne, a very special dragon belonging to Dr. Bergstrom, snuck into the Pennykettle's house, as he can turn invisible, and gave Gretel a potion flower and ingredients, which she used to get Gruffen to unlock her cage and set her free, where she continued to try to heal Grockle.

In Fire Star,Gretel helps the supposed Fain that commingles with Henry Bacon and later, a monk. Then she has David breath in a flower that helps him resist the Fain from invading his mind.