From the perspective of the Higher Mind and from the perspective of the Soul the physical life is a type of dream. You are the Soul's dream.
The Soul, in a sense, goes to sleep by projecting itself into the idea of a physical experience and chooses to forget that is an expanded Soul in a timeless reality and that it knows everything it needs to know. And by 'going to sleep' in that way, it dreams of itself being in this dense physical reality, with all its limitations, so it can explore a certain idea free from other ideas interfering with this physical dream.
You and your life experiences are the dream your Soul is having.
You are going through this reality and this experience to feed back to the Soul. When you 'wake-up' you can then allow yourself to know that this is a dream and that you have this dream experience, and that whatever you did experience in this dream adds to your Soul understanding of itself.
We are the dreams of All That Is and we dream All That Is into Existence as it dreams us into Awareness.