Still makes me smile and cry..

[passiveporcupine]

12. from Wiki

After the song's initial success, speculation arose — as early as a 1964 article in Newsweek — that the song contained veiled references to smoking marijuana.[5] The word "paper" in the name of Puff's human friend (Jackie Paper) was said to be a reference to rolling papers, and the word "dragon" was interpreted as "draggin'," i.e. inhaling smoke; similarly, the name "Puff" was alleged to be a reference to taking a "puff" on a joint. The supposition was claimed to be common knowledge in a letter by a member of the public to The New York Times in 1984.[6]

The authors of the song have repeatedly rejected this urban legend and have strongly and consistently denied that they intended any references to drug use

I don't believe it was ever about marijuana. I think some people would try to make any song from the sixties or seventies about drugs or sex if they could. (not you)

I believe PP&M when they say it wasn't, and it doesn't sound like it to me either. I mean, just listen to the words.