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Why do we dream?

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There is no single accepted answer, only well-supported candidates. The leading theories: dreaming helps consolidate memories, replaying and filing the day's experiences; it processes emotion, effectively overnight therapy, with REM sleep stripping the charge from difficult memories; and it may simulate threats and social situations as low-stakes rehearsal. These are not mutually exclusive, and the field increasingly treats them as overlapping functions.

Some mechanics are settled. Everyone dreams, several times a night, mostly during REM sleep when the brain is nearly as active as waking and the body is paralyzed to keep you from acting scenes out. People who say they never dream simply do not remember, and waking during REM is why you sometimes recall one vividly.

Dream dictionaries, for the record, have no scientific standing. The falling dream does not mean anything in particular.

No single accepted answer exists. The strongest theories: dreams help process emotions and consolidate memories during REM sleep. Everyone dreams nightly; most of it is simply forgotten.
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