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.

Puffaluffagus is a dragon with his head in the clouds. Even though he is a Daydream dragon, he cannot help succumbing to daydreams himself, and as such, he never pays anyone any attention. That is, until he met Incredibly Red Dorkface. Incredibly's hot temper and fierce nature captivated Puffaluffagus more than anything had ever before. He spent ages building up the courage to tell her how he felt, which wasn't helped by the fact that he could hardly concentrate anyway. Eventually, he told Incredibly, and to his shock, she felt the same. The two are now near-inseparable, and Puffaluffagus has a much better time concentrating now.