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.

Cloudy Cake was sallylamonde's first male dragon. He is the male founder of the "Cake" family. Cloudy likes to leap from cloud to cloud on the island Akinosa, where there are large puffy clouds and populated with many Purple, Daydream, Flamingo Wyverns, and Gray dragons. He also travels to the center island of the 11 islands, Sedianta, to meet his grandchild, Porfirio Cake and other friends. Cloudy Cake fell in love with Rosabli Flamothroat when he was visiting Embedia, the lava island. Turns out that Rosabli was visiting a week ago, but a hunter had captured the poor soul and she was now trapped in a cage. Cloudy immediately told her that he would go for help, then went to the second cave and asked a Magma Dragon for help. He freed Rosabli and thumped away. They have one child, Sound Cake. Cloudy also mated with a wild dragon, so he has another child that he abandoned. Currently her name is "my name is cooler than yours".