The phenomenal character of dreaming has long been a matter of philosophical debates. Most of the time, dreaming is either likened to perception or likened to imagination, in order to decide whether it gets closer to normal or abnormal states of consciousness. This line of debates extends from the traditional dream argument to the contemporary movement of phenomenology. This article presents what specific contributions phenomenology has made to the millennial investigations of dreaming. Its structure is twofold. Firstly, we introduce how (...) pioneering phenomenologists, including Edmund Husserl, Jan Patočka, Jean-Paul Sartre, Eugen Fink, and Jean Héring, analyse the lived characters of dreaming respectively. Secondly, we show that those pioneering phenomenologists, by engaging with the traditional dream argument, have laid out the worldliness of dreams as a crucial criterion for deciding how similar dreams and reality can be. (shrink)