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.

Cloud 263 is a loyal dragon but is sometimes too loyal. Since dragon trainers know that Daydream Dragons cause people to have difficulty focusing, the fact that he is too loyal can be really distressing. He keeps following DragonTamer263, which makes it hard for the trainer to concentrate when he has to take care of the eggs. Still, it isn't Could 263's fault. His species is just like that. He is the mate of White Meric, and he loves her, but not as crazily as she loves him.