How does enlightenment affect dream life?

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There is no dreaming in complete enlightenment. Dreams are just pictoral thought - it’s not needed when your body is at rest. But they don’t go away in an instant, and pushing them away is just like pushing away your ego - i.e. it doesn’t work. You just start to automatically recognize that you’re dreaming more and more frequently, and when you do, the dream usually stops, so eventually all dreaming ceases. Some people report periods of time when they watched their dreams knowing they’re dreaming. Eventually this ceases, too.