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.

Like her breed, Luna is a daydreamer and keeps her head in the clouds quite a bit. For a dragon, she believes in many bizarre things and finds it hard to make friends, since the other dragons think she is strange. Similarly strange Autumn dragon, Xeno, was willing to befriend her, and even eagerly mate with her and produce an egg. He also tends to believe some of her wilder daydreams and fantasies, making him her favorite companion.