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.

Cloudmaster Jeremy loves playing tricks on his fellow dragons. He'll get them to daydream all day about all kinds of things, which usually results in them attacking him with a violent retaliation. However, while they may try to react appropriately to his games, Jeremy has learned how to interact with the clouds and move about in them with perfect harmony. So long as it's a partly cloudy day, he can escape any of his current dragon companions. However, they all get along just fine ordinarily, as it is all in good fun. His use of the clouds, however, earned him the nickname Cloudmaster.