It’s been pretty plausibly suggested, many times over, that dragon legends might have been inspired, or at least bolstered, by discoveries of fossils. Not only dinosaur fossils, as you’d expect, but of later giant mammals, as well. Willy Ley wrote a number of essays about this in the 1940s and 1950s (which you can find collected in his various books, The Lungfish, the Dodo, and the Unicorn, Dragons in Amber, Exotic Zoology. The teeth of mammoths and mastodons, huge foot bones, wooly rhinoceros horns, and the like were sufficient to give rise to dragon legends.
More recently, folklorologist Adrienne Mayor made the same suggestions in The First Fossil Hunters and Fossil Legends of the First Americans.
There certainly were suggestions of dinosaur survival in Africa – look up Mokele Mbembe for details. If nothing else, the idea gave rise to a pre-CGI Disney fantasy, Baby: Secret of the Lost Legend, about an unbearably cute baby brontosaur.
Ley (who wrote about this one, too) made the suggestion that surviving dinosaurs might be at the root of the image of the Babylonian sirrush, which combines reptilian features with bird-like claws – Mušḫuššu - Wikipedia Fantasy and historical writer L. Sprague de Camp took this idea and ran with it in his novel The DRagon of the Ishtar Gate, which posits the survival of large lizards (if not exactly dinosaurs) in Africa. I point out, as well, that Adrienne Mayor suggested that it was finds of ceratopsian fossils (mostly protoceratops and ]I]psitticasaurus* ) in Asia, with the bird-like beaks and feet, that inspired the legends and images of the griffins.
Finally, the idea that dinosaurs might survive in an isolated region in South America (as Bricker observed) was wonderfully suggested by Sir Arthur Conan Doyle in his well-known but I think woefully underappreciated novel The Lost World, is which he took the known facts of the plateau of Huanchaca in the Amazon and suggested that ancient species might survive there, going so far as to create his own photomontage of the area. (It turns out to be true that the wildlife of the isolated plateau is, in fact, unique. There was a PBS special about it. Disney used the idea – basing their images on the plateau as depicted in the 1925 film The Lost World – in the film Up!)