In today’s psychological culture of evidence based practice where does dream analysis fi t in psychotherapeutic practice? A quick survey of a group of local psychologists revealed only 2 of the 10 practitioners did any work with dreams. None had covered the topic in their training. Does this mean that those of us who use dream analysis are not up with the times? This paper will present the latest research on dreams including the role of REM sleep in memory storage and retrieval. The relevance of dream analysis to current psychotherapeutic practice will be discussed. The relationship between re-occuring dreams and self-states formed in childhood will be explored.