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.

In dream, the impossible is not only possible, but it is expected. Those blinded could find themselves seeing a fantastic world even brighter than the one in which they dwell when awake. Old injuries could be, for a few moments of restless sleep, healed. The dead might once more walk with those they left. In dream one's deepest desires become reality.

Altel knows this as he drifts aimlessly above the clouds, allowing his thoughts to wander into the minds of those around him. And pulling their hopes and dreams together, he weaves a beautiful tale of wonder to amaze the sights of the sleeping mind he places the dream into. But though his motives are pure often out of sheer forgetfulness he mixes up the dreams he has made, sometimes even letting his own wishes fall in, creating a nightmare instead.