The term 'Dream State' is a combination of two words, REM and TRANCE. REM stands for Rapid Eye Movement, which is a type of sleep cycle that is associated with dreaming. TRANCE is a state of consciousness characterized by an altered state of awareness, often associated with relaxation and heightened suggestibility. Together, these two words describe a state of consciousness in which one is in a dream-like state, often characterized by vivid imagery and intense emotions.