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.

It's rumored that Esparza is a great deal stronger than she presents herself and is secretly well-versed in the magical arts. One neighbor claims to have seen her descend over a cave system bathed in purple light and place every dragon therein in a glassy-eyed stupor, to prevent their fight from demolishing the area. One dry day, she supposedly extinguished a conflagration of the Grain Grounds by herself. Four-Eyed Rem says he saw her stand between a mob and the would-be tetra victim and get impaled with spears, and rather than die on the spot, an annoyed Esparza removed the spears, dispersed the crowd, and carried her tetra rescuee away in her arms and legs. Furthermore, she was seen speaking casually with a zyumorph and addressing them as "daaaaad". Such irreverent behavior cannot be ignored! Esparza denies all of this. Not only is she lazy, fragile, and absentminded, there's no way a little ol' dragon like her could do any of that. Her neighbors must be delusional.