Just like any reasonable being that gets stabbed in the chest, the dragon-fairy writhes, causing the road under her to collapse, she falling into the deep mist. Is she dead? Don’t know, it’s not quite clear. But it’s highly implied.

The prince, feeling no remorse from his recent probable murder, skips back down the road towards the castle and finds his love in the highest tower. The princess is sleeping undefended, dead to the world. The prince comes over and decides to kiss her. What better way to steal your first kiss than when she can’t say no? He leans over and kisses her. Some say he does more than just kiss her, but that’s not PG. Anyways, she wakes up, breaking the curse. As soon as the rest of the kingdom wakes up, they get married, and they all lived happily ever after.

Except the scorned fairy. She’s probably dead.