Daydream Dragons are the hosts of daydreams and fantasies. They spend the majority of their time sitting on clouds, dropping daydreams down into the minds of people passing by. Humans who live near Daydream Dragons must be especially careful not to let their thoughts wander, or they could end up spending hours or even days in a trance-like waking dream state.

Dragons are highly-intelligent reptilian creatures that—from a human perspective, at least—appear to live forever. Many different varieties of dragon exist, each with their own unique qualities, habitats, and behavior. Adolescence in dragons is usually marked by the growth of a hatchling’s wings, although not all breeds of dragons grow wings and some breeds have other traits that indicate the beginning of maturation. In Galsreim, dragons and humans coexist peacefully.

This daydream is always conjuring fantasies of amorphous, hazy blobs reminiscent of balloon dragons—lighter than air, reddish-pink, and almost spherical. He insists there are only supposed to be ninety-nine of these balloons, but he gets distracted and keeps propagating the mental image to the point where everyone calls him 999He (the "He" is for helium, which fills the balloons) instead of 99He as he would prefer. 999He likes to sing, and at one point said the song and the balloons have something to do with world politics or hope and disasters or something along those lines, but since the metaphors are all so abstract and on top of that he is singing in a foreign language nobody in the area understands, it's hard to remember or interpret. Most people just think it's all very pretty and go on with their day.