This article is a response to Allan Hobson's theory that dreaming is a
form of psychosis and functional delirium. Without denying the resemb
lances between the two mind-states, or the validity of Hobson's genera
l argument that dreaming arises from a chemical ''balancing act,'' I a
ttempt to view this theory from a more functional point of view. Th us
, I see the central ''psychotic'' characteristics of dreaming-disorien
tation, attention deficit, spotty recent memory, confabulation, defici
t in intellectual functions, and decline of language usage-as aspects
of the dream's metaphorical/analogical function of memory consolidatio
n and of the thought process at large. I explore waking variations of
the same process.