In X778, Natsu found Happy's egg in the East Forest of magnolia Town. Natsu then took it back to the guild where he and Lisanna raised it together every day. One night, Elfman took it to keep it warm and the inayofuata siku when he brought it back, it began to hatch and out popped a kitten with a pair of wings. Happy's first word was "Aye". Natsu gave him the name "Happy" after Lisanna pointed out the change of the atmosphere from anger to happiness after Happy hatched from the egg. Despite everyone else seeing him as a cat, Natsu thought he was a Dragon.