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.

When Pinch Me I'm Daydreaming thinks happy thoughts, he becomes more buoyant and floats higher among the clouds. He loves just about everything, which has left him happily floating in the upper stratosphere among the stratos and skywings. Most of the time he can find enough to sustain himself between the insects and spiders that drift along the jet-stream and fish from the nearby rising falls, but when food is scarce that makes him sad enough that the heavy thoughts carry him all the way to the mountaintops, where he can forage among the treetops until he is feeling better. He is regarded by those on the ground as a barometer of the heath of the stratospheric ecosystem.