Dreamwork differs from classical dream interpretation in that the aim is to explore the various images and emotions that a dream presents and evokes, while not attempting to come up with a unique dream meaning. In this way the dream remains "alive" whereas if it has been assigned a specific meaning, it is "finished" (i.e., over and done with). Dreamworkers take the position that a dream may have a variety of meanings depending on the levels (e.g. subjective, objective) that are being explored.

A belief of dreamwork is that each person has his or her own dream "language". Any given place, person, object or symbol can differ in its meaning from dreamer to dreamer and also from time to time in the dreamer's ongoing life situation. Thus someone helping a dreamer get closer to her or his dream through dreamwork adopts an attitude of "not knowing" as far as possible.

In dreamwork it is usual to wait until all the questions have been asked—and the answers carefully listened to—before the dreamworker (or dreamworkers if it is done in a group setting) offers any suggestions about what the dream might mean. In fact, a dreamworker often prefaces any interpretation by saying, "if this were my dream, it might mean..." (a technique first developed by Montague Ullman, Stanley Krippner, and Jeremy Taylor and now widely practiced). In this way, dreamers are not obliged to agree with what is said and may use their own judgment in deciding which comments appear valid or provide insight. If the dreamwork is done in a group, there may well be several things that are said by participants that seem valid to the dreamer but it can also happen that nothing does. Appreciation of the validity or insightfulness of a comment from a dreamwork session can come later, sometimes days after the end of the session.

Dreamwork or dream-work can also refer to Sigmund Freud's idea that a person's forbidden and repressed desires are distorted in dreams, so they appear in disguised forms. Freud used the term 'dreamwork' or 'dream-work' (Traumarbeit) to refer to "operations that transform the latent dream-thought into the manifest dream".