In this perspectives piece we examine the role of dreaming in memory consolidation, the underlying neurobiological mechanisms of nightmares and the therapeutic potential of lucid dreaming for treating nightmares. Growing evidence suggests that dream content is shaped by both recent and remote memory sources, with non-rapid eye movement (NREM) sleep favoring the incorporation of recent declarative memories and REM sleep reflecting more remote experiences. When these dreams become pathological, we examine nightmares through the lens of the neurocognitive model, and focus on how nightmares affect mental health. We then explore lucid dreaming as a promising intervention to combat nightmares. Our conclusions claim that definitional ambiguity in dream research limits clinical progress, and we propose action to develop standardized definitions for dreaming and nightmares to guide cohesive research designs and enhance interstudy comparability.
