Shards of Dragonstone are Upgrade Materials in Demon's Souls.  They are used to upgrade weapons down the Dragon path.

In-Game Description

Dragon bone fossilized by lava. Enhances straight swords, axes, hammers, and so on.
An ore that applies the power of fire to a weapon. Weapons can be strengthened by Dragonstones up to a maximum of level 5.
Shard of Dragonstone
[[File:Shard of Dragonstone|px]]
Bearbug - Drop
Filthy Man - Purchase
Upgrade weapons to Dragon

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