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.

Sky Haze loves doing what he does best, which is of course dropping daydreams on the local humans. He sits in the clouds and watches as they wander about aimlessly after being caught up in one of Sky Haze's daydreams. He also enjoys daydreaming himself. Once he made a human daydream for days straight, and watched as all their friends and family got worried after thinking they had gone insane. Eventually it stopped and Sky Haze reminded himself never to do it that bad again.