Type the word "DREAM" or "DREAM SEQUENCE" at the end of your slug line. For example: INT. BEDROOM - NIGHT - DREAM SEQUENCE. Write the action below this slug line. When the dream sequence is finished, type "END DREAM" or "END DREAM SEQUENCE." Begin a new slug line and type "PRESENT" or "PRESENT DAY" to indicate the scene has shifted back to normal.
Type the words "BEGIN DREAM" or "BEGIN DREAM SEQUENCE" as an action line in uppercase letters. Directly under this heading type a slug line to indicate a location, or just write the dream sequence without a slug line. When the dream narrative is finished, write, "END DREAM" or "END DREAM SEQUENCE" in uppercase. Begin a new slug line to shift back to a normal scene. For example:
BEGIN DREAM SEQUENCE
INT. HOUSE - NIGHT
A strange noise startles John awake.
END DREAM SEQUENCE
A second example:
BEGIN DREAM SEQUENCE
John sleeps in a dark room.
A strange noise startles him awake.
END DREAM SEQUENCE
Type the word "DREAM" in your slug line, followed by the location and time. Under this slug line, write the dream sequence. When the dream is finished, type a new slug line with the words "PRESENT DAY" or "PRESENT" at the beginning of the slug line. For example:
DREAM - AMUSEMENT PARK - NIGHT
John runs, pursued by three shadows.
He falls, and before he can rise, the things attack.
PRESENT - OFFICE - DAY
John bolts awake, glances around, realizes he was dreaming.