Former England international Narraway, who spent last season working at French top-flight giants Bordeaux-Begles, has been named head coach and links up with Dragons with immediate effect.
Narraway will be joined in a new-look coaching set-up by Welsh Rugby Union international skills coach (forwards) Geraint Lewis, who will work as assistant coach.
Dragons Academy coaching duo Matt O’Brien and Sam Hobbs will also support the team throughout the seven-week tournament.
The Dragons XV kick-off the Celtic Cup with an away game at Connacht Eagles on the weekend of 23-25 August and also face home ties with Munster, Scarlets, Ulster and Ospreys.
Dean Ryan, Director of Dragons Rugby, said: “Luke is a person I know really well having played for me during our time together at Gloucester. He is a talented young coach who has spent the last few years with Bordeaux.
“He now has an opportunity for work with our Under-23s and we’re delighted that Geraint, who has huge knowledge of the talent pool in the region, is also working with us, with the full support of the WRU.
“We need to ensure our academy programme is better supported in the long-term and we are fully developing the age grade potential in our region.
“Having Luke and Geraint work with our young players during the Celtic Cup competition is an important part of that process and so we’re delighted they will both be joining us.”
Narraway joins Dragons after having previously guided Coventry to the National League One title as a player-coach before his move to Bordeaux.
The 35-year-old from Worcester won seven England caps during his career and also had playing spells with Gloucester, Perpignan and London Irish.
Lewis is a former Pontypridd, Bath, Bristol and Rotherham back-row forward who won 16 caps for Wales.
He was appointed to the role of WRU International Skills Coach (Forwards) in December 2014, which sees him responsible for delivering specialist technical coaching to every level of the pathway.