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.

Lord of the Dreaming is one of the more mysterious dragons in the cave. He possesses a highly developed, philosophical mind; one might see him pouring over Freud, Plato, John Locke, or other works of that nature. He is respected by the dragons in the cave, but they generally keep their distance from his roomy den, from which he rarely emerges. "Lord" will fly around in the high-set dome, searching for a particular work of literature; at any other time he will take requests from hatchlings in their eager quest for wisdom (few actually become his students). Militades will visit his den, where they discuss concepts or have mild intellectual debates. Lord hopes to find a mate, but in the meantime will keep searching for the answers in his expansive library. Lord of the Dreaming is admired by the females, but none have decided to pursue him, in favor of more physically fit partners.