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.

The Allusionary Princess is a daydream dragon. She is very nonchalant and carefree, and it seems as if her mind is in the sky, since she is never serious about anything and often wanders away in the middle of a conversation, not aware that it has happened. Very strange and serene, she spends her days staring off into space and flying around without any particular destination, dropping extremely peaceful daydreams on other dragons without realizing it, causing them to fall asleep while in the middle of doing something important. She sometimes forgets to even eat and sleep, though she shows no sign of sickness or hunger. To her, those things aren't needed, and she would rather spend her time pondering and thinking about nothing in particular. Some dragons say that The Allusionary Princess is lost in her own daydreams, and that she will never realize that she exists in the world of reality and not in her imagination.