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.

Quite flighty and air-headed, even for a Daydream dragon, the others in Hazycloud's cave wonder if it's something other than her breed's usual "head-in-the-clouds" nature behind some of her mishaps. For example, there was the time she went missing as a hatchling and was eventually found taking a nap, unaware that her cloud was hovering just out of reach of a patch of Dragon Grass. The cave's Whites have assured her owner that she's perfectly healthy, but the more curmudgeonly dragons still like to speculate that she fell off her cloud and landed on her head one too many times as a hatchling.