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.

Daydreams in Blue is a mischievous dragon that tends to actively follow humans, bombarding them with her fantasies. She especially enjoys following people who are journeying or working, distracting them from their task and following them as they wander aimlessly. She seems either oblivious or indifferent to the harm she causes doing this, but usually leaves before any irreparable damage is caused.

She loves playing with other dragons, but often alienates her playmates by constantly grasping for attention and playing bizarre pranks, not taking the others into consideration. As a result, few dragons actually want to play with her, and she is often left alone.