The paper argues that psychoanalytic theories of dreaming as well as the practice of dream interpretation in analysis have moved away from Freud's original conception and have approximated Jung's ideas of dreaming and dream interpretation. This development was influenced by the findings of empirical dream research, as well as through the findings of clinical dream research in the context of psychoanalysis. The paper points out the historical development of dream theories in psychoanalysis from Freud's days until today and contrasts it with Jung's theory of dreaming. This is followed by an overview of empirical dream research and its findings as well as an overview of clinical dream research in psychoanalysis, which was mainly conducted in the German speaking countries. The author himself has developed a research method for investigating dream series from analytical psychotherapies and conducted a number of clinical studies, the findings of which are also summarized in the overview. All of these findings support the main points of this paper: most of Freud's basic assumptions have been refuted, whereas Jung's view in general is supported; this revised theory of dreaming is well supported by empirical as well as clinical dream research.