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.

New Moon is an artist, which is not hard to believe since he himself spends much of his time daydreaming. He will fetch various materials from the forest floor and turn them into tools for painting little pictures in the ground. He is gentle and easy to get along with, but it is near impossible to have a decent conversation with him because someone will quickly change the subject whenever he is around. Since his personality is so warm and kind and since he had the power to plant daydreams in others' minds, no one is ever upset or worried around him.