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.

He is one of the Four Founding Dragons of the Aerithe Clan. Though he is much younger than the other three, he is appointed as Chief of Surveillance, as he has a certain talent for floating about, unnoticed. The first impression many have of him is that of a kind, beautiful, god-like creature. However, he shatters that image as soon as he speaks--as he is very cynical (and -much to his chagrin- tends to be bad in social situations). He enjoys lazing about on clouds, laughing at what he calls, "the extreme stupidity of others". Despite the pains he takes to seem self-sufficient, he has become extremely attached to Brindalle since meeting him (Brindalle becoming a sort of father-figure for Raqueth), though he prefers to pretend otherwise. Raqueth is apt to fly away to unknown reaches of the globe for periods of time, accompanied by his faithful childhood friend, Aiipae.