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.

Cloud Catching Hatchisitter is called Catchi by the hatchlings she watches. In a way, she is a sort of Guardian dragon, but in a Daydream's body. She is very protective of the hatchlings that she cares for and watches over, and will snap at Captain if she gets too close, in fear that the Vampire will bite one of them. She is very fond of the quiet Little Tiger Lily, whom stays around her always. Cloud Catching Hatchisitter has somehow broken the wall of daydreams that make her what she is so she can keep a more consistent watch on the hatchlings. To her, the hatchlings are her 'daydreams' because of their cheery, upbeat nature. If one is gone, and she doesn't know it, she will go into a fray, trying to find them. When she finds them at last, she will be upset and ask why they went off. Some dragons like to watch her frays, but others frown at it because of the hatchlings' adventurous nature.