This excerpt is taken from Sheikh Hafiz Mubashir Hussain Lahori's book Signs of the Day of Judgment in the Light of Authentic Ahadith.
Sign of the Day of Judgment: Every dream of a believer will be proven true
عن أبى هريرة رضى الله عنه عن النبى صلى الله عليه وسلم قال : إذا اقترب الزمان لم تكد رؤيا المسلم تكذب وأصدقكم رؤيا أصدقكم حديثا
It is narrated from Hazrat Abu Huraira (RA) that the Prophet Muhammad (PBUH) said: When the time of the Day of Judgment approaches, no dream of a believer will be false, and the truest dream will be that of the one who is also the truest in speech.
Reference: Bukhari: Book of Interpretation of Dreams: Chapter on Restriction in Dreams (7017) Muslim (2263) Ahmad (2/672) Tirmidhi (2270) Ibn Majah (3993) Darimi (2144) Abu Dawood (5019) Hakim (4/432) Sharh al-Sunnah (6/296)
عن أبى هريرة رضى الله عنه عن النبى صلى الله عليه وسلم قال : فى آخر الزمان لا تكاد رؤيا المؤمن تكذب وأصدقهم رؤيا أصدقهم حديثا
It is narrated from Hazrat Abu Huraira (RA) that the Prophet Muhammad (PBUH) said: In the last times, the dream of a believer will not be proven false, and the truest dream will be that of the one who is also the truest in speech. Dreams are of three types:
➊ Good dreams which are glad tidings and good news from Allah.
➋ Psychological dreams.
➌ Distressing dreams from Satan.
Reference: Ahmad (2/355 - 672) Bukhari: Book of Interpretation of Dreams: also (7017) Muslim (2263) Hakim (4/432) Abu Dawood, Tirmidhi, Ibn Majah, Darimi, Sharh al-Sunnah (also)
Benefits:
➊ The occurrence of every dream like the break of dawn is a sign of the Day of Judgment.
➋ This sign has not yet appeared, although its occurrence before the Day of Judgment is definite and necessary.
➌ Various opinions have been expressed regarding the time of the appearance of this sign. For example:
◈ This sign will appear when religion and Shariah are forgotten, knowledge comes to an end, and everywhere there will be sedition, corruption, and bloodshed.
◈ It will appear when the believers remain in very small numbers so that they receive divine guidance through true dreams and remain steadfast in the religion.
◈ The appearance of this sign is associated with the time of Prophet Jesus (peace be upon him) because at that time, Muslims free from falsehood, hypocrisy, hatred, envy, disbelief, and polytheism will remain, and their truthfulness will directly affect their dreams.
Reference: Fath al-Bari: 406/12
◈ In Hadith number 1, the phrase:
اذا اقترب الزمان
"when the time approaches"
has occurred, whose meaning is disputed; however, the prevailing meaning is that it refers to when the time of the Day of Judgment approaches, because in other hadiths, instead of اذا اقترب الزمان, the phrase في اخر الزمان (in the last times) is used, which supports the mentioned meaning.
◈ In the last times, every dream will be true and unambiguous, but before that, dreams will be divided into three types: true, false, and hadith al-nafs (scattered thoughts).
