A huge dragon-shaped cloud amazed locals in northern Thailand as it appeared to be chasing the sun.

The bizarre formation was spotted hanging low in the horizon in Phayao province on August 8.

Residents stopped to gaze up at the cluster of thick clouds, which looked like the mythical beast with a glowing orb, known as a 'pearl of power', hovering near its snout.

Drivers pulled over to take photos, with some superstitious locals insisting the cloud formation would bring good fortune according to ancient beliefs.

Experts said the spectacle was caused by unusually shaped cumulus clouds which, combined with the reflection of the sun's light, created the appearance of a dragong chasing the divine orb.