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.

Silly Happiness is as happy as anyone can be. She's happy for any reason, whether it is sunny outside or chillingly cold and wet. She loves the smell of the rain, and the icy pricks of a hailstorm. She loves the warmth of the sun and the tranquil clear sky. Even in dismal situations, Happiness chooses to be optimistic rather than accept the harsh realities. Other dragons wonder how she can be happy all the time. However, it's no small wonder: Happiness keeps in the company of other optimistic and hopeful dragons.

Yet, contrary to her normal behavior, Silly Happiness has found contentment with her very antithesis: Silly Sadness. No one knows why. It might be because of the neighboring Heartseeker dragon. It might be because love is a mysterious thing indeed.