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.

Scar Heaven is a thoughtful young dragoness, sitting on her cloud and spending her days musing over philosophical questions in life. Scar Heaven's name is—unlike her mother's—due to physical and not emotional wounds. Her face bears a huge scar over its left half, caused by a drop from her cloud and into a forest. Living with a face that is remarkable ever since, she has to prove to herself that she's as beautiful inside as other Daydream Dragons are on the outside.