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.

Nicht Litelight has cold feet. He has been known to jump down from his own, pale blue clouds to land on the cloud of steam rising from a pot of soup or coming out of a chimney of a palace high up in the bamboo forests as the chefs inside prepare meals. When Nicht is around, the cooks' minds tend to wander, often very far away from their tasks. His effect is particularly strong among those folding pasty dough around scoops of spiced, ground meat and shrimp. They become engrossed in visions of silver fox-tailed rabbits, twelve-winged dragonflies, or other, equally-fantastic things, which causes them to generally make a mess of their work. Nicht doesn't mean to cause harm, but the head chef keeps chasing him away for his wonton destruction.