According to Osho, life seems like one long dream only to the asleep. Your unconsciousness distorts everything, so you even turn the Master's words into dream material. For the awakened, the dream has broken and reality is truth; the enlightened already see your intrinsic light. His teaching is an alarm clock - hear it and awaken, rather than weaving another dream around it.
Life feels like a dream because we are asleep inside; wake up and the real truth appears.