Yes, Zuko has met dragons before, but the meeting was brief and rather nerve-wracking at first. She tenses at the sight of the shadow, almost falling into a fighting stance before checking herself. She isn't sure she could take a dragon in full health, much less wounded like she is.

She watches cautiously as it lands before her, taking in the differences from Ran and Shaw but no less sure that this is a dragon. But then it talks, and that is the part that really throws her.

"You're talking," she states dumbly. "This has to be a dream." She's definitely had dreams before with talking dragons in them.