Dreams undoubtedly have a place in our deen; Allah's Messenger (peace & blessings be upon him) said, "Nothing has remained from Prophecy except Al-Mubasshirat. The Companions asked, 'what are Al-Mubasshirat? He replied, 'Righteous dreams.'" Thus, when good dreams are seen, in which there are glad tidings, one should thank Allah and be happy.
However, it is important to avoid being obsessed with dreams or to overreact and pay extra significance to them. Generally, two attitudes are found within Muslims. Some reject dreams outright and pay no significance to them at all, and there are others whose entire lives revolve around dreams and regard dreams as a means of salvation and superiority. Both attitudes are extreme and should be avoided. The way of the companions and early Muslims was a path of moderation in between these two extremes.
The great interpreter of dreams, Imam Ibn Sirin said (also reported from Imam Ahmad), "A [good] dream may make a believer happy, but let it not deceive him/her." In this one short statement, the Imam explains the full actual reality of dreams. When good dreams are seen, one may express happiness, thank Allah, and even relate it to a few close people. However, dreams are not a final and categorical proof for anything. Thus, a good dream about one's self or another may be disclosed to a few, but relaying it to a mass audience, circulating it, behaving as though it is an absolute proof, and treating it as though it is a text of the Qur'an and Sunna is an overreaction and thus should be avoided.
It is reported from the great scholar, faqih, muhaddith and Shaykh of the subcontinent Hakim al-Umma Mawlana Ashraf Ali Thanawi (Allah have mercy on him) that when anyone would ask him for a dream interpretation, he would simply say, "I am neither the night nor the worshipper of the night that I talk about dreams, I am the slave of the sun (i.e. the Messenger of Allah, peace be upon him, and his teachings related to one's day-to-day life) and can speak only about the sun. If one has a true dream with some glad tidings, he should be grateful to Allah. One should, however, not take dreams as a criterion for superiority and saintliness."
The great Mufti Muhammad Shafi' (Allah have mercy on him) would record all the good dreams people saw about him and relayed to him in a register. However, on the cover of this register, he wrote to remind himself and others, "In this register I am recording dreams which the righteous servants of Allah have seen about me, I am recording them because they contain glad tidings and good omen. May Allah rectify me by virtue of these dreams. I am, however, warning all readers that these dreams are not a criterion for superiority and righteousness. No decision should be taken about me on the basis of these dreams. The real criterion are the acts and dealings of a man during his waking hours. People should not fall into deception on account of dreams."
This is the reality of dreams. One should focus more on acting upon the teachings of Shari'ah in one's day-to-day life. A good dream can be taken as a positive sign, but it is not the ultimate and absolute proof for anything. When good dreams are seen about someone who passes away, one may take them as a good omen, but regarding them as absolute proof of his righteousness is wrong. Otherwise, other people will begin claiming deviants and imposters (such as Mirza Gulam Qadiani) to be righteous on account of their dreams. The real proof of someone's righteousness - which should be focused on more - are their good qualities and habits in their wakeful life, and Allah knows best.
- By Mufti Muhammad ibn Adam al-Kawthari