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.

Lyrical Sphere is a female Daydream dragon. Her life is dedicated to a bizarre passion of hers. Lyrical Sphere is a hunter of rainbows. She seeks these natural phenomena wherever she goes, and has a habit of steering every conversation towards the topic of rainbows. None of the other dragons know why Lyrical Sphere is so captivated by rainbows, but this doesn't both the Daydream dragon. It seems that she does not require any logical reason for loving rainbows.

Being the Daydream dragon which she is, Lyrical Sphere sometimes can send others into daydreams of varying lengths. These dreams are all centred around rainbows. Lyrical Sphere is inclined to believe that it was one of these daydreams which inspired Dulled Fortune, a Tinsel dragon, to join her in her quest to find the end of the rainbow. The truth is far less whimsical; Dulled Fortune wants to seize the gold rumoured to lie at the rainbow's end. Nonetheless, the two are united in their desire to reach the end of the rainbow.