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In a traumatic reality after Hamas terrorists attacked Israel on October 7, 2023, and during the ensuing war, Israeli citizens were exposed to ongoing security threats and collective trauma. This qualitative study analyzes 203 dreams experienced by Israeli participants 7–10 weeks following the massacre. Participants were asked to describe their dreams following October 7: “Do you remember a dream you had since 7/10? If so, could you please share it? If you would like to add thoughts, associations, and insights to it, we would be happy if you would add them here.” The findings reveal four core categories, all relating to the witnessing role of the dreams: (a) the internal other as witness; (b) the voiceless victim; (c) the false witness; (d) the witness with a voice. The reactions expressed range from powerlessness and voiceless testimony and false witnessing on the one hand to a sense of internal witnessing and a feeling of resilience and strength on the other. The results were interpreted relying on Bion's, (2013) and Grotstein's (1979) theoretical concept of thinking and dreaming and demonstrate the mental movement that occurs even in a traumatic reality between feelings of helplessness and feelings of resilience and hope. In addition, the study suggests that the categories of the internal other as witness and the witness with a voice may be linked to a course of manic defense that seeks, in view of the traumatic reality, to offer an antidote to destruction, fear, and horror through experiences of awe and beauty. The findings and conceptualization can contribute to the theoretical knowledge associated with dreams in times of traumatic reality and acknowledge the rehabilitating and transformative role of dreams in such times, helping clinicians assist individuals to cope with shared traumatic reality.