The Microsoft console will be the 67th platform to host the laserdisc classic, which was originally released for arcades in 1983.
Kinect support has been added for the Xbox 360 edition of the game, offering a choice between physical or motion controls. A 'Full Watch' mode will enable players to view the game as an animated feature.
The Dragon's Lair series has seen a minor resurgence in recent years. The original was reissued for the PlayStation 3 and other platforms in 2010, and its sequel Dragon's Lair 2: Time Warp landed on the DSi that same year.
Dragon's Lair is one of only three video games on permanent display at the Smithsonian Institution in Washington DC, along with Pong and Pac-Man.
Dragon's Lair arrives on XBLA on May 18.
Watch a trailer for Dragon's Lair below: