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.

Arleilu floats sleepily at the front of the cave, calmly watching over the hatchlings and eggs with one eye half open. It's not that Arleilu is a bad babysitter, it's just that taking care of the young has never been a very exciting job. If things ever got out of hand, all he has to do was conjure up a pretty daydream to distract them or just put them to sleep. Arleilu is the maker of dreams that make sense, but somehow do not at the same time. So if you are ever dreaming, all the while believing you are awake and knowing that you are asleep at the same time, you can thank Arleilu. But watch out though, if you scorn his dream-making skills, he will come after you with a vengeance. He will not give you nightmares, as it is not his style, but he will force incredibly strange dreams upon you that you will sometimes mistake as daytime memories.