Dragons gain new powers as they accumulate more energies. At each stage of growth, they gain a new ability, usually culminating with the twelfth ability when they accumulate . The usual progression of powers is as follows:

• Level 1: Feyflame breath weapon or sleeping gas
• Level 2: Immunity to confusion
• Level 3: Immunity to deception
• Level 4: Immunity to paralysis
• Level 5: Scales allow bearer to cast a glamour (or improve bearer's glamour powers)
• Level 6: Illusory wall
• Level 7: Vanish at will, once per year
• Level 8: Mindreading
• Level 9: Dreamreading
• Level 10: Dreamshaping
• Level 11: Summon fay or sidhe
• Level 12: Enter dreams of others

All dragons accumulate energies by absorbing them naturally from the area around them. As such, they must carefully cultivate their lairs to provide the right kinds of energies, hence they hoard appropriate objects.

Other common powers include sleepgaze, mesmerizing, long distance whisper, control fey diversity, grant good dreams, and create major illusions.

Indigo dragons dwell on islands off the coasts of the Summer Empire, where reality is soft. There, they languor in the wash of unreality that comes from the indigo waters. They lay eggs on the beaches, where reality is softest, so that they can absorb dreams readily upon hatching. A single parent cares for the young, usually a birth parent but not always.

Living on islands, they have small populations that trade with them, usually fey or ingidenous human or animalman islanders, or islanders, and this is how they build their hoards, though later in life, they take to gathering items lost in dreams. Most are loyal to The Faerie Queen, but some are aloof and isolated. These are usually obscure scholars.

Some indigo dragons leave their island homes to wander the Dream Realms. These are called kren-sith, and they usually become fey dragons eventually.

When indigo dragons grow old, they eventually fall into a deep sleep, fading away into dreams and becoming a minor miro-lord.