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.

In the language of Gilquine, which Galamanca is able to speak, Mikaile means "Daze". Or, more precisely, "In a dazed state".

Mikaile thinks of herself as nothing short of royalty. She utilizes her dreaming powers to both amuse herself and also to hypnotize humans into slavery. Unbeknown to her master, she regularly visits the local villages to collect new servants. To the other dragons of her cave, she is nothing but a pest, who they dearly wish to be vanquished. But whenever they announce this to their master, they often find him later in a sleepy, dazed state of mind.