its a pipe in the song PUFF THE MAGIC DRAGON
puff the magic dragon, lived by the sea, frolicked in the autumn mist (the smoke), in a land called HONALEE (pipe 2 smoke)
The residence of Puff, the magic Dragon. Puff is a controversial metaphor in that he is either (1) a symbol of childhood, and how the character Jackie Paper grew up and abandoned Puff, or (2) simply a symbol for marijuana.
Puff the magic dragon lived by the sea
And frolicked in the autumn mist in a land called Honalee
Little Jackie Paper loved that rascal Puff
And brought him strings and sealing wax and other fancy stuff