Like all spirit creatures, the Fey have no need for sleep or dreams. But they watch mortals embrace the “little death” night after night. The loss of consciousness and control fascinates them, since it is such a foreign concept.
Fey that have created physical bodies for themselves can understand and enjoy sleep. Dreaming provides them with an experience very close to the mortal ability to create new things.
Ancient Fey that have grown tired of life may choose to undergo the Final Sleep. This is not death as mortals know it, but a change in their state of being that will allow the Fey to sleep and dream for decades. To enter the Final Sleep, they become part of the landscape. Which part depends on what ancient element the Fey feels closest to: Air, Earth, Fire, or Water.
The Earth aligned Fey (Gnomes) will often become boulders, part of a mountain, or a patch of rich soil. Air aligned (Sylphs) and Fire aligned (Salamanders) will appear to dissipate as they become one of their element. Water aligned (Undines) will often join a single body of water or create their own. In these forms, they sleep and dream. Their bodies preserve the existence of the Feylands. Their Glamour reaches out and makes their dreams real, making the Feylands an ever-changing and interesting place to live.
Collectively, they are known as the Dreaming Ones. You do not want to wake them.