This is a very good question! Dolphins have to breath air so they have to come at the surface. Thus they cannot sleep like we do or they would drown. Instead they float at the surface in a behaviour we called logging and they shut down only one half of their brain. In this way they can sleep with half brain while the other half maintains functions as breathing and it’s vigilant against predators.
I am not aware if they dream or not. Some researches showed evidence of brain activity similar to the one we have while we dream but this kind of experiment need the dolphins to be monitored with a machine while sleeping and it’s very difficult to do in the water and impossible in the wild.
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rebeccas commented on :
thank you this was a very interesting answer 🙂