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.

The youngest of Teh Tree Brudders (see Clepshydra's description), Palumbus is the more laid-back and sophisticated. His hobbies include making dream-catchers, home-brewing Sky Ale, creating silly shapes in the clouds and sleeping on the roof of Captain Fudge Sundae's villa. He is the more settled down of the three—indeed, he dreams of having a long and famous line. He has several children by his on-off girlfriend Mikaea.