From DailyHalacha.com
The Rabbi Jacob S. Kassin Memorial Halacha Series
Authored by Rabbi Eli J. Mansour (12/10/2010)
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Description: How Should One Respond After Dreaming That He Committed a Sin?
If a person dreamt that he committed a sinful act - such as a dream that violated Shabbat or ate on Yom Kippur - should he view the dream as a sign from God that he must repent? Or, may he simply ignore the dream?
Rav Haim Palachi (Turkey, 1788-1869), in his work Haim Be'yad (52), writes (listen to audio recording for precise citation) that there is no need for one to be concerned about such dreams. He notes that to the contrary, the Gemara comments that certain dreams involving sinful conduct are actually auspicious omens. For example, the Gemara comments that one who dreams that he engaged in an incestuous relationship should expect to acquire wisdom, and a dream of a relationship with a betrothed girl could mean that a person will become a Torah scholarship. Clearly, then, a dream about an inappropriate act does not necessarily portend evil or indicate that one must repent.
However, the Ben Ish Hai (Rav Yosef Haim of Baghdad, 1833-1909), in his work Rab Pe'alim (vol. 2, Yoreh De'a 32), writes that sometimes dreams of this nature may, indeed, be an indication that one had inadvertently sinned and requires atonement. He cites the Gemara's comment in Masechet Nedarim that if a person dreamt that he was placed in excommunication, he should seek release from excommunication. Furthermore, Rav Haim Palachi himself, elsewhere in that same work (Haim Be'yad, 92), writes that it is praiseworthy to be concerned about such dreams. And he relates the story of the Tashbetz (Rabbi Shimon Ben Semah Duran of Algiers, 1361-1444), who dreamt that he ate non-kosher meat, and after some inquiry discovered that indeed he had eaten some meat of questionable kosher status.
In fact, Rav Yaakob Haim Sofer (Baghdad-Israel, 1870-1939) would record every time he dreamt a bad dream, and eventually collected all these descriptions into a special booklet. For example, he writes that one year on Ereb Pesah, he dreamt that some kosher meat and non-kosher became mixed together, and once he dreamt that certain cheese which was assumed kosher was in fact not kosher. On other occasions, he dreamt that there worms in the bread sold in the kosher market, and that recently-slaughtered meat was not kosher. And there was once when he dreamt a verse, "God shall protect your soul," and in the subsequent weeks certain calamities befell the community, but Rav Yaakob Haim was spared. He also writes that every year on Tisha B'Ab he would dream verses of comfort and consolation.
Interestingly enough, in his work Kaf Ha'haim (239:6), Rav Yaakob Haim relates an incident of a person who entered the synagogue for the Minha prayer, and he began the service with the Amida, skipping the preliminary recitations ("Le'shem Yihud," "La'menase'ah," the Ketoret, and "Ashreh"). He then dreamt a dream criticizing him for skipping these sections of the prayer service. As it turns out, this man was none other than the Kaf Ha'haim himself; he records this dream in the aforementioned booklet. He once skipped the preliminary portions of the Minha service, and he was criticized for this omission in a dream. Similarly, he writes in Kaf Ha'haim of a person who customarily gave three coins to charity during the recitation of "Va'yebarech David" in the morning, and once neglected to make this donation. He then dreamt that he was criticized for neglecting this practice. This, too, is a reference to the Kaf Ha'haim himself, as he records in his booklet. Thus, according to the Kaf Ha'haim, dreams of this nature are certainly worth concerning oneself about, and one should respond through serious introspection and repentance.
Practically speaking, all this applies on the level of Midat Hasidut (a special measure of piety), and is not required according to the strict Halacha. Additionally, one who feels distressed and anxious as a result of his dream should use it as an opportunity for introspection and Teshuba. On the level of strict Halacha, however, one may certainly ignore such dreams and is not required to undertake any special measures in response. This is the ruling of Hacham Yishak Yosef, in his work Shulhan Ha'ma'arechet (p. 5).
Summary: Strictly speaking, there is no need for one to be concerned upon dreaming a bad dream, such as a dream suggesting that he had committed a forbidden act. Nevertheless, it is meritorious to utilize such dreams as opportunities for introspection, particularly if the dream causes one anxiety.