If something is wreathed in smoke or mist, it is surrounded by it. The ship was wreathed in smoke Fog wreathes the temples. = shroud
{f} shape into a wreath, shape into a circular arrangement of flowers; festoon; adorn; decorate with a wreath; encircle, enfold; move in curling masses (of smoke); move in circles or spirals
If something is wreathed with flowers or leaves, it has a circle or chain of flowers or leaves put round it. Its huge columns were wreathed with laurel and magnolia