*Mirajane Strauss*

Years ago, before Happy was born, he was taken away from his parents, Lucky and Marl by the queen of Extalia, Shagotte, to carry out the Dragon Slayer assassination plan. In actuality, sending him to Earth Land, along with all the other Exceed eggs, was to allow him to escape a future disaster in Edolas.
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 next day 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.