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.

He lives up in the clouds, like most of his kind, but he spends his time daydreaming himself. Often, his mind wanders so much, he ends up slipping into another's conscious. Sharing their dreams or daydreams, sometimes even their nightmares. But when a nightmare or bad dream occurs, he swirls his tail around to dispel the nightmare and give good dreams to the dragon or human whose mind he's sharing at the time.

When Cloud is awake, he spends his time weightlessly jumping from cloud to cloud, each time dropping a daydream down onto a passerby below. He never speaks, and most say he's a mute, but no one has gotten close enough to find out, but he doesn't mind. He prefers to communicate through shaping the clouds with his tail or through the dreams and daydreams of others.