Witchlight Dragons are silent, secretive beasts that haunt the most remote corners of the wilderness. They beguile their unsuspecting prey into peril by assaulting their perceptions of reality and stoking the fires of paranoia with masterfully-conjured illusions. Unwary travelers have been led astray by the soft, inviting glow of their eyes amidst a sea of encroaching darkness, never to be seen again. Those that survive a Witchlight Dragon’s psychic onslaughts do not escape unchanged: some believe that the apparitions these dragons summon to tempt or torment their victims awaken them to hidden truths about themselves.

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.

Proprietor Inver runs a little business where spells and magical elements appear to work in unexpected ways. He excitedly offers "inverse battles" to all visitors who enter his cave, and while he is happy to explain what inverse battles are, he'd rather try it out instead of talk. He channels all of his magic into his cave so only participants inside are affected, and those new to the concept often find the strange effects within a lot more challenging and the rules more nuanced than they first assumed. While people are thrown for a loop inside Inver's cave, once they exit, everything works as usual again. Battlers may not share his idea of "fun", but a great number of them challenge him because of the prizes, even a consolation prize when they fare terribly. Inver offers colorful berries and rare candy, though the most popular of the prizes is one or three elemental stones imbued by the mana hanging in the air of the cave.