Dancing in a dream is usually a sign of strong positive emotions. If you are dancing in a dream, you are probably very happy about something in real life.
You need rhythm in order to dance, so dancing or watching someone in dance a dream can mean that you are feeling in tune with the rhythms of life. You may have a dream about dancing after you have been going through a confusing time in your life; the dream means that you are finally starting to feel settled again.
Dancing requires balance, so if you dream that you are dancing, it can mean that you have found balance in your life.
Dancing in a dream can also be a sign that you need to develop your creative side.
If you are dancing with someone else in your dream, it is a sign that you want to have more of a connection with them. A dance with a stranger in a dream can symbolize the integration of different aspects of your personality.