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.

Cloudasty is one of the few dragons that follows the scroll-bearer everywhere. He will watch from the cloudy skies above, hiding behind a cloud as he keeps watch. The scroll-bearer is most likely occupied in his adventures, but when he takes a break, Cloudasty brings down daydreams of the previous fun adventures, and dreams of the future to come. Whenever he feels lonely, he flies down and glomps his caretaker, cuddling around him. In this situation, the human would lie down patiently until the dragon is asleep, then leave him alone. It's a mystery how Cloudasty is still able to find him again afterwards, but he always does.