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.

Pink clouder, the beautiful Daydream, came from humble beginnings. His father took him in while his mother rejected him. Pink soon grew up with his mother's ignoring him. He set on a quest for his parents to deem him a beautiful and intelligent son. He would have died if it hadn't been for the young dragon trainer Kai's dragons. Kai is a friend of Pink's trainer.