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.

Nema has always had a playful crush on the electric dragon Ralen Starbolt, although Ralen himself is doesn't know.  Her friends always tell her she should reveal her feelings to him, but she insists she will when the time is right.  One of Nema's favorite activities is to sneak up on Ralen when he is alone by letting daydreams slip into his mind.  Eventually he simply smiles and calls her name to which Nema will reveal herself and hug him, then talk to him about various topics.  Nema had done this for months before she finally decided to tell him she loved him.  Just as she was about to tell him he stopped her and whispered "I know..." and hugged her.  Since then the two have happily spent their days together and tend to balance out each other's flaws, because of this many dragons have come to nickname the two "Yin and Yang".