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Explanation: I have translated this expression in a literary context with "oneiric" universe, content, imagery, etc.
Rather than "dreamlike" (oneiric does refer to dreams and not something like dreams) I would use "dream" as an apposition to universe, or world, if the sentence runs something like "their dream world is people with... is full of..." (important here to give the whole sentence).
You could go even as far as translating it "their unconscious world" since night dreams, according to the theory, are part of or come out of our unconscious.
paola l m
p.s. I am behind in my Amazonia project, alack and alas.