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.

Draef, which means Everlasting Dream, is the Everlasting Clan's cloud scout. Draenal, the air scout, only goes to about 300 feet, as that is his limit to his vision. Draef stays among the clouds, using his dream sight to look for trouble, and if he finds any, he instantly drops a daydream into the heads of troublemakers and drops off his cloud to report to Draeutl, the intelligence officer of the Everlasting.