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.

Nolad lives on a bank of eternal clouds above Amacarin's mountain. Amacarin is a Gray dragon who loves to make Nolad miserable. Nolad is a lazy and peaceful dragon and complains most loudly when his cloud is whisked around faster than flight by young Amacarin. Nolad composes poetry and songs, most about heroic rescues and such. Of course, a dragon takes the place of the knight as the hero and the knight is the villain. Nolad is inspired by the stars and moon above him and loves to watch the world glide by as he slowly rotates around Amacarin's peak. Nolad never comes down from his cloud, and his cloud sustains him. It gives him rainwater to drink and sustains him with energy. When Nolad is not being thrown around the sky, studying the sky, or composing, he is sleeping. Nolad loves to bathe in the sun's warm rays.