Spectroscopic observations, covering the 3500-7000 A region, of the symbiotic star AG Draconis are reported. The Balmer and He I line profiles were found to show pronounced blueward asymmetries. Changes in the line profiles of the Balmer lines were observed, and found to be well correlated with the 554-day photometric period of Meinunger (1979), with a second, blueward component being visible in the Balmer emissions at photometric minimum. The weak, blueshifted component in the Balmer emission lines is explained in terms of a stellar wind from the hot secondary at about 60 km/s. The behavior of the broad emission feature at 6380 A has been investigated. This feature was found to originate from an iron with an ionization potential in the range 77-101 eV. Various models for AG Dra are discussed.