There are organizations that study lucid dreaming, a big institution that conducts studies is National Institute of Health (NIH). The link below also explains dream studies. The brain is connected to sensory machines where readings are taken while you sleep in order to determine brain activity.
Dreams, though they cannot be studied in a lab, can be dissected and, some believe, can be interpreted for the benefit of the individual. Those who study dreams believe that everyone dreams and that dreams relay our innermost thoughts and feelings. They believe that most of what we dream is forgotten once we awake, but that those memories are still available upon prompting.
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