Abstract: The theory of dream interpretation is one of the three backbones of Freud's psychological analysis. In novels, dreams are not only part of the content, but also a kind of the narrative skill. While, as the extension of reality, dreams urge the development of the plot. In Reflections in a Golden Eye, American female writer Carson McCullers adeptly utilizes compensation, displacement and prediction function of dreams to blur the borderline between the reality and illusion, dig into the distorted inner depth of the characters and deepen the theme of spiritual isolation and absurdity of human nature.