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Can I move dragons around to different habitats? How?

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Tap on the habitat of the dragon you would like to move. Now, you should get an icon for every dragon in that habitat at the bottom of the screen. Tap the dragon you'd like to move. This will bring up the details screen for that dragon, where you can tap "move" (it is to the right of the large "feed" button). Now you may tap on any compatible habitat that has empty space to move your dragon there. Eligible habitats will have a bouncing green arrow above them.

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Peter has explained it very well. This is a good process of selling habitats or moving dragons in better/different habitats. – DekuLeaf Apr 8 '13 at 1:00

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