Studies reveal that the average person daydreams for a whopping 70-120 minutes of their waking day. Daydreaming is an important part of dream research. As with all types of dreams, you enter a kind of hypnotic trance and allow your unconscious thoughts to rise to the surface.
During daydreams, you are semi-awake. Clearly not asleep - but not fully checked-in with reality, either. A daydream starts with a compelling thought, memory or fantasy, and your imagination runs away. The longer you daydream, the deeper you becomes immersed in your private fantasy land.
It's been suggested that people who daydream a lot find it easier to lucid dream. That's because daydreaming is like practicing lucid dreaming while you're awake - observing imagery in your mind's eye and directing the course of your fantasy. In fact, visualization is one of my main lucid dreaming practices.