I have been working with this. Here is how Tenzin Wangyal describes the experience of sleep and dreams:
“The normal process of sleep occurs as consciousness withdraws from the senses and the mind loses itself in distraction, thinning out in mental images and thoughts until it dissolves in darkness. Unconsciousness then lasts until dreams arise. When they do, the sense of self is reconstituted through dualistic relationship with the images of the dream until the next period of unconsciousness occurs.”
I have bolded that passage as that has been my experience of late during lucidity.
I have found that some very interesting things happen in the liminal space between dreaming and waking in this practice.
Just curious as to whether anyone else is dabbling in this.