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.

Daydream dragons drop dreams and fantasies by accident, occasionally becoming the muses for artists of all species but most notably humans. Lakotanu, however, not only makes those around him distracted, but also accidentally sends his own thoughts and feelings out to their minds to communicate or disrupt people when unconscious. It quite random, due to his breed's inability to control it, but sometimes he can communicate with Endyminion and even The Pillow Monarch without waking them, who both spend much of their time sleeping almost through the entire day.

However, this ability is more on the fact that his telepathy 'magic' cannot keep his thoughts to himself and is able to bypass most living things mental 'sleep' barrier than on his species' aura that encourages free flowing thoughts.