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.

Lost Dream can commune with the dead and help them move on. For a dragon Lost Dream has so much responsibility he can barely stand it. Lost Dream is dutiful though and helps all the spirits he can and he follows the unseen ones commands without question. His clan worries for him as he crashes to sleep each night, barely having enough time to daydream. Many of the ghosts he helps reward him and he has many trinkets from this side of the world and beyond. Lost Dreams's favorite is a ghostly amulet that flickers in and out of existence; it's constantly around his neck. It is a reward for helping the ghost of a beautiful queen.