Bandit is a Light Dragon.
History
The Realm of Shadows
One day at the Monastery of Spinjitzu, Kai and Nya were busy training while the rest of the Ninja were out on another mission. As they trained, a group of travelers arrived, bringing a pot of Traveler's Tea and Bandit's egg to the monastery, alongside instructions left for them by Wu. Not knowing what the egg was, Kai immediately started playing with it, tossing it between his hands while Nya read aloud Wu's instructions, part of which included, "Do not let Kai play with the egg - he is clumsy!" Upon hearing his name, however, Kai fumbled his catch and dropped the egg, which then hatched into Bandit. Realizing they were to follow the baby dragon, Nya named him "Bandit" as she and her brother departed the Monastery and began following the dragon to parts unknown.
After traveling for hours with no end in sight, Kai began to grow impatient. Fortunately, he had called the rest of the team to intercept with Destiny's Bounty, which the siblings and Bandit then boarded to reach their destination quicker. Unfortunately, the ship was then attacked by Clouse's Shadow Minions who managed to capture Bandit in the ensuing struggle, delivering him to their dark master.
As the Destiny's Bounty flew over the Toxic Bogs, Kai and Nya leapt off the ship in pursuit of the Shadow Minions. There, they discovered a trail of Bandit's scales, following them to the Shadow Temple, where they unlocked the door and freed Bandit from his transformation into a Shadow Dragon, turning him into a Light Dragon instead.