Allow me to answer this with an excerpt from my book Dream On It, Unlock Your Dreams Change Your Life...
Dreams are important because dreams are thoughts. You see, when you are dreaming, you are thinking, but on a much deeper and focused level than when you’re awake. Think about it, when you go to sleep the lights are off, your eyes are closed and the world around you is shut out. There are no distractions. The mind doesn’t stop working at this point. Whatever your stream of thought is as you drift off continues and begins to go inward, and as your conscious, waking, literal mind slips into a state of rest, your deep inner subconscious mind takes over. Once you enter the REM phase of sleep, which is when dreaming takes place, a structure located on the brain stem called the pons, sends signals to the cerebral cortex (the region of the brain responsible for most of our thought processes) that dreaming has begun, which means some very serious and deep thinking is now happening. So that waking stream of thought that was using words and that your conscious mind had control of is now controlled by your inner subconscious mind and is no longer using just words but is also using images, experiences and emotions. Your thoughts have turned into dreams.
Through our dreams – we speak to ourselves about what is going on in our lives, we guide ourselves through difficult situations, and we point ourselves towards what we really, truly and deeply need to live the life we are meant to live.
When you can understand your dreams, you’ll find that they are the best glimpse of reality available. They are the way you are brutally honest with yourself when your conscious waking mind refuses to be. They are the way you nag yourself over a recurring behavior you need to correct or an issue you aren’t giving enough attention to, hence the persistent recurring dream. They are also your very best friend and advisor when you need to make a tough decision or solve a difficult problem. No one truly knows what is best for you… than YOU! The truth is, your best thinking isn’t done in the shower, it’s done while you dream. In fact, when we say, “Let me sleep on it” what we’re really saying is, “Let me DREAM on it.”