When we consider our dreams in a waken state of consciousness they seem confused, often fantastic, frightening or silly and most often they seem filled with impossible convolutions of time and space. Dreams also frequently negate of the laws of physics and defy our intellectual and emotional consistency.
Here's a brief thesis on why.
As physical creatures we must translate our experience of reality to accommodate time and space, as Einstein describes in his specific and general theories of relativity. We "fit" into our scale in the universe through he contextual constructs of both time and space - external physical realities that are accounted for by our minds every second of every waking moment of our lives (for the most part.)
However, time and space are corporeal constants, and are not noetic requirements. That is, our minds do not require time and space to function! Our minds only use the constructs - the formulas- of time and space, all day long, to make sense of things around us. When we sleep, we do not need time and space to think. And our intellectual and emotional fabric has been woven in our conscious life, and therefore makes sense only when filtered through time and space.
Therefore, when in a dream, you find yourself jetting through time, flying, or sitting on the edge of the bed of an acquaintance with a penguin while waiting for the dance to start, you are simply recalling the confusing state (spatially and emotionally) of a thought process that is not bound by time and space. The mind is not obligated to associate the wakeful emotions and intellectual mechanisms with time/space incongruities.
If this is the case, and the human mind can function without time/space constraints, it may only be a matter of learning to "see" beyond the habitual limits we set forth as methods to understand our physical aspect, and "re-fit" ourselves into a wider, more exotic reality.