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.

Alavia spends almost all of her time sitting in her cloud, away from the rest of the world. Way up there, she can daydream all she wants. Unlike most daydream dragons, she doesn't much care for dropping daydreams into other people's minds. She prefers to enjoy them herself. She spends so much time lost in fantasy that it worries the other dragons of her clan. She has very few friends; only those who are willing to fly up to her cloud and remain aloft with her ever really speak to her. Her friends find that they cannot keep her interested in the real world below, so they end up swapping daydreams and playing out fantasies with each other. Some of the clan elders are strongly against young dragons visiting her, for fear that she will cause them to forget their duties, or worse, that they will become so in love with their fantasy worlds that they will cease returning to the real one.