Balloon Dragons are so named because they are filled with a gas that makes them almost lighter than air, similar to balloons. However, they are not prone to bursting, as they are covered in tough skin and can deflate themselves if necessary. In addition, they generally are slow moving. They use their gas bladders to float to the tops of trees, where food is more abundant. They can shift their weight from their backs to their fronts, allowing them to reach leaves and fruit.

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.

Kris Kringle is under the strange impression that he is Santa Claus. He treats the pygmies like elves, forcing them to make toys even though they are not remotely elflike at all. However, his insanity also has some benefits. Every year, the hatchlings in the cave can expect a gift from Kris (made by the enslaved pygmies). Kris is very good-hearted and can be seen spending hours on end doing nothing but eating.