Whats Happens When We Dream?

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I'm sure every would dream. Many say that dreams are the opposite of our real life i.e dreams do not come true. However when I was young, the exact same dream came true, the surroundings, time of day, objects were all the same! Any explanations? Recently, I have been dreaming of people I've never met in life. But they keep appearing and I seem to know them well in my dreams. Why is this happening? Please share any "supernatural" events you had in your real life that was related to your dream =)