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.

Malica Dairy Secret is noted in the clan for her large fluffy tail, wavy hair and a pink colored cloud she always sits on. Malica is a dragon that is shrouded in mystery and speaks to the imagination of her clan. Malica loves to entertain her clan with her wonderful creative daydreams, though she occasionally drops nightmares on her clan's enemies to protect them. One day when Malica gave her best friend, Verlaine Torrens, a beautiful daydream, Verlaine joked to other clan members that "Malica made all her wildest fantasies come true". Strangely, Verlaine's comment grew to become a myth and later a legend. The joke was misinterpreted into a crazy story about that Malica wasn't a Daydream dragon but a magical dragon that could really make your wishes come true. Malica is ironically nicknamed the "wishmaker" because of this. While Malica's clan knows it isn't true, other strangers do not. Due to this, Malica is often used as a threat when the clan is under attack.