Dragon? Demon? Both?

Water God Dragon

The tide rose to the point that the whole town was submerged "What is going on!?" I looked over to my friends seeing them playing with the fish, with absolutely no thought given to the fact that they are submerged underwater. Sighing I noticed that Lucy wasn't playing like everyone else, I swam over to her "yo Lucy, do you kmow why everything is submerged?"
Lucy looked at me and shook her head, "I'm 'fraid not, I don't know why everything is submerged, my only logical theory is that the water god dragon is doing this, why? I don't have a clue" I nodded, having come to the same conclusion, when I felt a powerful magic signiture eminating from the north-west, I swam in that direction to see what it was.
Arriving at the signiture, I saw a woman chained inside a cage, swimming down to her I sniffed at her for a reason why she would hold this much power, I smelled a dragon scent mixed with that of a human's "oy! Wake up!" The woman came to quickly while sniffing the air (water?) then violently breaking her chains and charging at me with the intent to kill. Dodging the attack, I swiftly knocked her down with a karate chop. She growled while getting up "who are you? I smell both a dragon scent and demon scent on you" she tried to attack me again.
Dodging again, I replied "I am Etherious Natsu Dragneel, Dragon Demon hybrid, slayer of Acnologia, inheritor of the apocolypse element and Fairy Tail member, now who are you?" She continued throwing attacks, after a bit of dodging miss crazy's attacks she stopped "I am Kiria, Blade Dragon Slayer 5th gen, Diabolos mage." I raised my eyebrow in confusion "5th gen?"
"We obtained the power of dragon slaying through eating dragon flesh, aka dragon eaters." She went on the offensive again. Deciding I had been on the defensive for long enough I 'disappeared.' Appearing in front of her, I hit her in the stomach sending her flying (swimming?) into a wall. 'Disappearing' again I appeared in front of her again, raining blows on her. After a few minutes I backed off to see what her condition is, she was knocked out with a few scratches here and there, looking up I saw a giant blue serpant "and what might you be?"
The serpant looked right back at me, we held the gaze for what seemed like a minute before it spoke "I am the messenger for the Water God Dragon, I come looking for one Natsu Dragneel" I raised my eyebrows "and what would one of the mighty pentadrakes want with me?"
"I have no clue, only that I've been tasked with escorting you to him."
"Alright! But let me get my friends first" I grabbed all my friends and popped up in front of the Messenger "ok, all ready to go, lead us" the Messenger nodded and headed deeper into the ocean. My friends just at looked me confused "God Dragon" I stated, everyone just nodded and started to follow.
(small time skip, inside castle of the water god dragon)
The inside of the castle was somehow filled with air. In front of us was a man that had horns and a tattoo on his face that reminds me of a certain blue haired heavenly body mage "greetings, welcome to my home" I raised my eyebrow at that, then decided to walk up to him and take a big sniff "WHAT IS UP WITH DRAGONS LOOKING LIKE HUMANS AND HUMANS LOOKING LIKE DRAGONS" I tugged at my hair in frustration.
The dragon just chuckled "well said dragon demon, I am a dragon, the Water God Dragon Mercphobia, I'm assuming that Elefresia sent you to 'seal' me?" We all nodded in affirmation "and how do you want to be sealed?" Lucy questioned, Mercphobia's entire mood did a 180 "death" everyone froze up at that, Wendy was the first to recover "why?" Oh boy this is gonna be dark "I have lost control of my power, I am the reason the town nearby is in disrepair and I keep the townsfolk alive by gifting them seamless transformation magic has led them to believe they are fish instead of humans. I must be killed so that the town's folk can return to normalacy."
After he finished his little speech my friends were shocked, a new person had joined us, she was female, had an hourglass figure, and had this stoic but kind atmosphere, our eyes locked, after a silent conversation between us we nodded, I turned my attention back to Mercphobia "I'll slay you on two conditions, 1, you must tell the town's folk the truth and 2," I gestured towards the female "she is goin with you" that surprised Mercphobia.
(1 heated conversation later :P)
Mercphobia and the woman named Karmeel had been argueing over the topic of her passing on with him for hours now, and it was getting on my nerves "STOP BICKERING LIKE A MARRIED COUPLE AND LET'S GET ON WITH IT!" They both had the decency to blush and nodded in agreement. I snapped my fingers and we appeared in the middle of the now dry town.
(1 explanation later, I really don't like being redundent XD)
The town was in defiance of Mercphobia passing on, and it had been another 2 hours! Seriously, what is up with noble sacrifices and selfishness always being pitted against each other. It seemed that Mercphobia had had enough, transfroming into his dragon form he let loose his roar into the sky, causing the townsfolk to flee in terror and for my friends to put their guards up, I simply smirked "about time you transfromed!"
Mercphoia merely chuckled "are you gonna kill us yet?" I nodded my affermation, activating my apoclypse mode I jumped up and punched him in the snout "how fast?" I asked, while charging up a breath attack "just kill us already!" I heard Karmeel yell from Mercphobia's back, nodding I unleashed my roar "FIRE DRAGON KING'S APOCOLYPTIC ROAR" cyan flames poured from my mouth and covered Mercphobia's head, when the flames died down I saw that half his scales were gone.
I was about to attack again when I heard "DRAGON SLAYER'S SECRET ART: SHATTERING LIGHT: SKY DRILL" Wendy in Dragon Force shrouded her legs with wind spinning in a drill motion and struck the underside of Mercphobia's head, piercing straight through it, I gaped at how strong that attack was, shaking my head I went to kill Karmeel "rest in peace you two, FIRE DRAGON'S APOCOLYPTIC CLAW" I shrouded my hand in fire and slashed Karmeel across the throat, beheading her.
I burned her corpse to ashes so that no one could defile the body. Turning to Wendy I saw her staring at Merphobia's blood with curiosity. I walked over to her whislit powering down "what's the matter?" Wendy looked up at me then back at the blood "I feel a hunger, a desire to bath in the blood, and it's very confusing" I nodded in understanding "go ahead, after you do I'll burn the corpse." Wendy slowly waded to the center of the pool, then submerged herself. After a couple seconds she emerged and slowly walked back out.
"I feel like I just went through 5 years of training!" I chuckled, after burning Mercphobia's corpse I explained that dragon slayer's gain a massive power boost through bathing in dragon blood, the stronger the dragon the bigger the boost in power. "let's head back to our friends" Wendy nodded and we walked back to our friends.
(time skip, back at the town inn)
"So you're telling me that Wendy killed Mercphobia after you weakening him?" Erza asked me with a tone that promised pain. "Yep" I replied.
"And then Wendy proceeded to bathe in Mercphobia's blood and got a massive power boost?"
"That's exactly what happened, she could probably fight and kill one of the God Dragon's alone now." Erza continued to glare at me until her gaze seemed to soften ever so slightly "You're lucky she is a dragon slayer or I'd kick you into next week" sighing she got up and left the room towards her own, I was about to go downstairs and eat when I heard an explosion coming from Wendy and Erza's room. Rushing over and kicking open the door I saw Kiria and what seemed to be a couple of her guild mates standing over an uncounsious Erza and an injured Wendy.
Kiria smirked at me "now what are you gonna do?" I shook my head in annoyance and and lazily sent a fireball at her, the three of them dodged, effectively spliting them up. Appearing next to Kiria, I grabbed her and threw her out the wall that they destroyed to come in. 1 of them, a guy dressed in bone armor assumed a defensive stance, smirking I sent a low power fireball at him, to my surprise he turned the fire into ash, deciding to test his partner that was clad in plate armor I fired another low power fireball at him.
He simply took it and emerged unscathed "alright, enough playtime" appearing behind skull dude I punched him out to Kiria with a FIRE DRAGON DEMON'S INCINERATING FIST. The armored dude was shocked at how far his partner flew, not missing a beat, I did the same to mr. armor. Rousing Erza awake I explained that we should probably leave and head north becaused I sense another God Dragon. After grabbing Gray and Lucy, we started walking north.
(time skip, north of Elmina)
Once we were far enough away from the city, which was about 3 miles or so, we stopped to catch our breath. I stayed alert, making sure that we weren't being snuck up on. Satisfied that we weren't, I looked over at my teammates deliberating what to do now, taking a glance at the sun, I noticed that it was late afternoon "we're camping here for the night, probably do some training as well." Erza nodded in agreement, Lucy, Gray and Happy were indifferent and started to set up camp.
Wendy aproached me and asked "why training?" I looked her in the eyes "everyone here needs to learn how to control the output of their magic with the exception of Lucy and Happy, because they either use magic that isn't overly destructive or have always been good at controling their magic." Wendy nodded in understanding "also, you need to get used to the huge burst in magic power that you got, and I need to train with the apocalypse element that I inherited from Acnologia."
After setting camp up, Lucy, Gray, Wendy and I gathered at the top of a nearby knoll, "alright, form a circle around me" they complied, forming a circle around me, the one facing me being Lucy "alright, come at me" I got in a defensive stance, waiting for them to make a move, Lucy immediatly went into her Stardress: Leo form, Gray activated his Devil Mark and Wendy activated her Dragon Force. We stood there for a good 15 seconds, surprisingly, Lucy was the first to attack, rushing me with a glowing fist, Wendy followed her example, rushing me from behind with a wind covered fist, smirking, I blocked both attacks and pushed them back, Gray sent an Ice Arrow at me, it melted before even touching my skin. Wendy jumped up behind me and breathed in "SKY DRAGON'S ROAR '' sending a tornado of wind at me, putting my arms up in front of me, I took the full force of the roar, being pushed a few feet back. I activate my Devil Mark "Good job Wendy, let's see how you handle this, FIRE DEVIL'S ROAR" I send a cone of purple fire at her, burning her slightly. I'm suddenly hit from behind, knocking me off balence. I look behind me to see that Lucy had landed the attack. I grinned, igniting my fist with devil fire, I punch her. Just before I do she swapped dresses to taurus form and caught my fist, extinguishing the flame. Smirking, I deactivate my Demon Mark and snap my fingers, surrounding Lucy and me in orange dots. The orange dots explode, sending Lucy away from me as Gray rushed me with two swords made of devil ice "ICE DEVIL'S ZEROTH ICE BRINGER" Gray slashed me with a downward X strike. I was trapped in a spiked ball of devil ice. Deciding to try the apocalypse element I activated Apocalyptic Fire Dragon mode. Exploding my way out of my cage I faced my three students "time to get serious, no holding back now." They instantly got into a defensive stance, one second passed, 2 seconds passed, 3 seconds "FIRE DRAGON'S APOCALYPTIC ROAR" a cone of cyan fire raced towards my 3 students. Gray and Wendy sent their own breath attacks to counter, Lucy summoned Scorpio to help with countering my breath attack. After half a minute of fighting for dominance the attacks  cancled out, deactivating the mode I said, "I think that's enough for today, have a good night sleep everyone, I'll take first watch." Wendy and Gray nodded and headed back to camp. Lucy lingered though.

(Listen to Baby I Love You (nightcore) by Tiffany Alvord)

I sat down and patted the ground next to me, offering to Lucy to sit down. Lucy sat down next to me and seemed nervous "you alright?" Lucy opened her mouth and paused, finally shaking her head, "what's the matter?" Lucy seemed even more hesitant with this question, a certain piece of paper that Lucy gave me invaded my mind, I reached into my front right pocket and took it out, Lucy curiously studied the small piece of folded paper, sighing, I gave it to her, "you gave me that when you were druck once, I'd like to know if it's true." Lucy unfolded the piece of paper and gasped. The paper had 3 words on it, a simple 'I love you' but was so much more than just that, Lucy stared at the 3 words for 1 minute, 2 minutes, 3 minutes. She finally turned to me, an intense fire in her chocolate eyes "I love you." She kissed me, light and soft, but with an intense passion behind it. I slowly returned the kiss, returning that passion she has. After half a minute, we seperated for air "I love you too, Luce" I smiled, "will you do me the pleasure of being my girlfriend?" Lucy nodded so fast I was afraid her head would come off, kissing her to stop her nodding, she melted into the kiss immediatly.
Seperating, I smiled at Lucy "you should go to bed." Lucy pouted "but I want to spend time with you." She whispered, hugging my arm. I chuckled, shifting her into my lap, I wrapped my arms around her and hugged her close. She slowly fell asleep while I held her close to myself.