...in exactly the same way as images in a dream may change in a single moment. In the case of a dream, it is not the actual object represented in the dream that is seen but rather, an image or likeness of the object manufactured by the image-making faculty of the mind – the imagination. It is this image that the dreamer sees in his mind, and through it, he gains the knowledge which the dream was sent to reveal, be it true or false. The person’s image-making faculty creates a picture in his mind consisting of dream images and symbols corresponding to the knowledge revealed through the dream. The picture is such that the dreamer thinks he is actually seeing the objects themselves.
The Strange Realness We Experience Inside Dreams
Kalach Pitchei Chokhmah 8:7