Lucid Dreams –
Dreaming with conscious mind. Sometimes a person realizes during a dream that they are dreaming but still continues to dream. Also with these dreams we end up controlling and directing our dreams.

False Awakenings -
This type of dream is basically very vivid type of dream where one begins to dream of waking up as normal and continue to do the regular morning activities but then when you really wake up you realize that you were just dreaming.

Nightmares –
A terrifying dream in which the dreamer experiences feelings of helplessness, extreme anxiety and sorrow. Nightmares are very unpleasant dreams that disturb the dreamer.

Day Dreaming –
Daydreaming is a short-term detachment from one's immediate surroundings, during which a person's contact with reality is blurred and partially substituted by a very pleasant thoughts. A person day dreams when he or she is very much awake.

Recurring Dreams –
A recurring dream is a dream which is experienced repeatedly over a long period of time. They can be pleasant dream or nightmares too.

Deja vu –
Déjà vu, from French, literally "already seen", is the phenomenon of having the strong sensation that an event or experience currently being experienced has been experienced in the past, regardless of whether it has actually happened.

Above are the types of dreams However when we have to describe our dreams to someone, it is like telling a story. You use past tense to describe what you dreamt and present tense can be used if you are talking about a recurring dream or when you are trying to recall the details of what you dreamt.