In the manner of dreams; with respect to dreams; in terms of dream logic.
From dream + -wise (Old English wisan, meaning 'to turn' or 'go,' used as a suffix meaning 'in the manner of' or 'with respect to'). Modern examples include 'likewise' and 'clockwise.'
The -wise suffix is ancient—it turns nouns into adverbs describing manner or perspective—and it's still productive in business jargon (saleswise, marketingwise), showing how this Old English affix remains alive in contemporary English.
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