We present the spectral analysis of an 87~ks emph{XMM-Newton} observation of Draco, a nearby dwarf spheroidal galaxy. Of the approximately 35 robust X-ray source detections, we focus our attention on the brightest of these sources, for which we report X-ray and multiwavelength parameters. While most of the sources exhibit properties consistent with AGN, few of them possess characteristics of LMXBs and CVs. Our analysis puts constraints on population of X-ray sources with $L_X>3times10^{33}$~erg~s$^{-1}$ in Draco suggesting that there are no actively accreting BH and NS binaries. However, we find 4 sources that could be LMXBs/CVs in quiescent state associated with Draco. We also place constraints on the central black hole luminosity and on a dark matter decay signal around 3.5~keV.
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