Dreams usually appear unrealistic when we wake up, but we accept them as reality when we’re asleep. If we postulate that dreams are based on past experiences (as well as suppressed memories) it is reasonable to argue that a dream can be perceived as reality when we’re dreaming because it is images that we’ve experienced in real life. It’s also possible to claim that a dream can present memories in a disordered way and be mixed with imagination; they can appear as a flawed reality when we awake from the dream.
Ernest Sosa claims in his essay Dreams and Philosophy (2007) that dreams are real beliefs, but that they don’t form new false memories. I agree with this statement as experiences contribute to your beliefs at large, and while imagination is part of dreaming it will not create memories that never occurred; only in the notion of reality in your dream can you experience something you haven’t in real life. Sosa also holds that it is not possible to be aware of being in a dream state and at the same time know that you’re