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 Dreamworld Emperor is a calm, graceful leader who controls his people through gentle speech and peaceful promises. However, as such of any father, he longs for his long lost child; an egg in which he produced with the Empress of the Albinos. As the egg was his first child he longed to protect it however it was not of Daydream blood so it 'fell' from the Dreamworld leaving the Emperor feeling very guilty for abandoning it. The Empress of the Albinos also longs for her child but believes him to be too soft.