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.

Waka is the General of the Reverie Army of Daydream dragons. His original title of "Reverie General of the Daydream Air Force" was too long to fit on his dragon tag, so he reluctantly scrapped it. Though disappointed, General Waka continues to boss his subordinates around. Named for Waka of Okami, this general often uses many terms of endearment, making him one of the most casual generals to command this Daydream Army.