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.

Cloudei lives in a valley with many different species of dragons. He spends most of his day on his cloud, in his own thoughts. When he is daydreaming, another dragon in the valley is often thinking of the same thing. At night, he sends dreams over the dragons in the valley as he sleeps and is in his own dreamworld. Normally if a being came to close to him, they would be stuck in seemingly endless dream if they weren't careful, but the dragons that know Cloudei well can let their thought wonder without worrying too much about being stuck in a dream for hours on end.