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.

Demetrius doesn't find the same enjoyment in causing daydreams that most other Daydream dragons do. He spends his time drifting around Damian's cave, studying the plants that inhabit the surrounding forest. His greatest desire is to return Valkemare to a state of complete naturalism, devoid of structures or signs of human interference, but he is conflicted by his equal desire to make humans happy. Kufu, the Skywing, often has long discussions with him on the ethics of either scenario.