Absorptive Daydreaming is immersion in waking fantasy with complex narratives that can have a variety of themes, including romance, heroism and vengeance. Existing research has focused on Maladaptive Daydreaming (MD), a compulsive form of Absorptive Daydreaming that causes distress and can lead to difficulty with daily functioning and goal achievement. Absorptive Daydreaming has been described as a form of dissociation that functions primarily to regulate emotional distress. Yet, evidence to support this assertion is limited, and other avenues that may suggest functions of Absorptive Daydreaming have not been explored, and Immersive Daydreamers, for whom the behaviour does not have a negative impact, have been excluded from research. The existing research on MD suggests that Absorptive Daydreaming may have several functions, and it may provide substantial social rewards. The current study tests the hypothesis that Absorptive Daydreaming is significantly more socially rewarding than conventional daydreaming. It also examines the functions indicated by daydream content and the relationship between maladaptive, immersive and conventional daydreaming and Sense of Self, Problem-solving and Creativity. A cross-sectional study design was employed to gather data from a sample of English-speaking adults from around the world (n = 385). Results indicate that Absorptive Daydreaming is highly socially rewarding and that the way Absorptive Daydreamers perceive their relationships with others may contribute to the ability and influence the development of MD. No significant relationship was observed between Creativity and Absorptive Daydreaming, although problem-solving is not discounted as a function. These findings suggest that increasing the social rewards experienced outside of daydreaming may reduce problematic Absorptive Daydreaming. They also create substantial scope for further research that could lead to a better understanding of Absorptive Daydreaming and effective treatments being developed for MD.