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.

Since she is sometimes bored, Psydragoon, or Psy, takes rides in clouds. She thinks that it is needed to drop daydreams while riding. Psy thinks it's fun, but there is no person likes what she does. A few times, she has been caught and sent to do nothing. Now Psy does not ride too often, but she still does. Also she is best friends with Lucky.

She is also the first dragon on a new owner's scroll. With only Lucky as a friend, they needed to be together to live. They dislike the owner, but not hostile to it.