I have heard the question asked before and we've all "surmised" answers, but I do believe they do dream.
A couple nights ago I was having some tummy distress and couldn't sleep. Now, normally I sleep like the dead so don't have a clue what goes on around me, i.e., thunder, lightening, hail storms, . . you get the picture. Well because I could not sleep, I was aware of Bijou and his sleep antics. He was sleeping with his head on my pillow facing me (his nose was perhaps 1-2 inches from my nose), when he started growling like he does at the vet or when he sees an intruder in our yard. This growling went on for several seconds to the point that I was concerned he might lash out at my face in his sleep. I touched him and called his name and he didn't wake up. I had to physically move him and talk to him before he work up.
I think he was chasing squirrels in his sleep and he had one up a tree.
A couple nights ago I was having some tummy distress and couldn't sleep. Now, normally I sleep like the dead so don't have a clue what goes on around me, i.e., thunder, lightening, hail storms, . . you get the picture. Well because I could not sleep, I was aware of Bijou and his sleep antics. He was sleeping with his head on my pillow facing me (his nose was perhaps 1-2 inches from my nose), when he started growling like he does at the vet or when he sees an intruder in our yard. This growling went on for several seconds to the point that I was concerned he might lash out at my face in his sleep. I touched him and called his name and he didn't wake up. I had to physically move him and talk to him before he work up.
I think he was chasing squirrels in his sleep and he had one up a tree.