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.

Wednesday Dreams is the bane of the Dragontown merchants' existence.  She's too sweet and scatterbrained to deliberately cause them any harm, but a favorite prank of visiting Goldenmage Assembly trainees is to enchant her cloud so that it floats over the merchant district, and it's extremely difficult to haggle when one's mind keeps wandering.  Dragontown's writers, on the other hand, would love to have Wednesday Dreams float above their houses—most find they get their best ideas when their minds can roam freely—but she prefers (when not magicked into doing otherwise) to float around the outskirts of the city, since there's less noise there.