Falkor is sent to Atreyu at his moment of need, he couldn't have had better timing. Just as Atreyu is about to be consumed by the Gmork, Falkor cascades down from the sky and grabs him up in his dog-like snout.
He likes children, not for breakfast, but genuinely. He likes to be scratched behind the ears, in further accordance with his all-around dogness. He is glisteningly white and seems to be somehow covered with scales, fur and feathers at the same time. He chuckles, winks, smiles knowingly and can fly. He has also been known to swim underwater with aparently no breathing problems. He flies Atreyu all the way to the 'boundaries of Fantasia', despite the Gmork's assertion that Fantasia has no boundaries.
Even Bastian gets to soar on the back of Falkor, when the Empress grants him this first wish. Together, they scare the shit out of those bullies.

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