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.

Karen is an unusual Daydream dragon insofar as she seldomly sends out dreams of her own, instead she is rather practical considering her breed. As a consequence she spends a lot of her time making sure the other Daydreams eat enough and have everything that they need.

Her presence alone seems to inspire the other Daydreams to new heights, better and more elaborate visions and an overall bigger amount on dreams send out.