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However, centre Mark Gasnier remains in doubt with a collarbone injury.
Bailey hasn't played since tearing the pectoral muscle in his chest in round nine.
The incumbent test forward has been given the thumbs-up by club doctor Martin Raftery and is expected to start on the interchange bench.
Gasnier broke his collarbone in the closing stages of the third State of Origin game in July.
"He's going to be reviewed towards the end of the week," Raftery said.
The Dragons will be near full-strength for the Penrith game.
Winger Reece Simmonds and prop Jason Ryles (rib cartilage) are both available after missing the club's round 25 win over Manly.
Simmonds was rested from that game.