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.

Nalfar has his head in the clouds, literally. He spends nearly all his time floating above the cave, searching for someone to send a day-dream to. He believes that he is helping others escape their worries and follow in their dreams, but most dragon find him to be an annoyance. While most Day-Dream dragons send down thoughts and wishes of romance, travels to far-away places, and exciting adventure, Nalfar sends dreams consisting of eating large piles of cheese, attacking rainbows, and running from overly curious butterflies. Clearly Nalfar has to set his goals a little higher.