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.

Sieran has been known to "nest" just outside of villages and offer advice to the weary in exchange for food and gifts; he has built a reputation for himself and is often welcomed by nearby villages. Sieran stores any gifts he receives in a cave he found, and uses his ability to make one "daydream" to deter and potential spelunkers or looters, to keep his treasure hoard safe.