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.

HazeShift DreamSong is a Daydream dragon, and in addition to her kind's usual powers, also has the gift of appearing in other people's dreams. This ability manifested itself even when she was an egg, resulting in her very puzzled owner dreaming about catching hundreds of Daydream eggs and the other dragons dreaming about tripping over or being buried under the same. When she hatched, her family soon recognized her when she visited them in their dreams and while it was adorable the first few times, everyone soon learnt to dream up an exit door and push her out of it when she made an appearance. HazeShift put a spanner in this by growing into a large, powerful dragon who could not be pushed out exit doors as easily as a hatchling. Hazeshift, while good natured and likable enough, has an impish side to her, and takes an evil delight in appearing as an obvious spectator in the most embarrassing dreams and telling everyone about it afterwards.