In dreams, we experience images without recognizing them as images and without understanding their deeper meanings. It is not quite correct to say that in dreams we think we are awake. Part of what it is to think that we are awake is to exercise the capacity to distinguish between waking and dream states, and it is this capacity that goes to sleep when we sleep. Thus dreams states do have a reality and power for us, not because we think we are awake, but because the capacity to distinguish between waking and sleeping has temporarily shut down. So again there is disorientation: we lose the capacity to recognize our dream as a dream and thus to determine what it is about.
Jonathan Lear – Wisdom Won from Illness p.212