the mind (the ‘psychic apparatus’) creates a dream as a compromise. The unconscious urges are transformed by the four mechanisms of the dream-work and are allowed a disguised, hallucinatory fulfillment that prevents their real nature from disturbing sleep.
This passage articulates the core Freudian mechanism by which wish fulfillment operates in dreams: unconscious urges are granted a disguised, hallucinatory satisfaction via the dream-work, preserving sleep while deflecting the disturbing reality of repressed desire.
, An Introduction to the Psychology of Dreaming, 2017thesis