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The second revolution in dream research, initiated by the REM technique for monitoring dreams, has so far resulted in relatively few contributions that have direct relevance for the psychoanalytic clinician. This, despite the obvious advantages of the dream laboratory for the study of ego functioning in altered states of consciousness. We have attempted to link the REM awakening situation to the free association situation in psychoanalysis by focusing upon the vicissitudes of silence and verbalization in transitional states of consciousness characteristic of both situations. A study of the laboratory dream reports of a neurotic patient in psychotherapy has revealed that the considerable amount of variation in the time period between the signal to awaken and the initiation of dream reporting was related to certain formal linguistic aspects of the manifest dream reports. Such linguistic aspects of the reports were seen as indicators of resistance and/or integrative work similar to phenomena often observed in the free association process. An attempt was made to specify how such data from the dream laboratory may be helpful to the clinician by alerting him to either regressive or adaptive trends in the treatment process. Problems for future research were outlined for the purpose of stimulating interest in studies which can bridge the gap between the consultation room and the laboratory.