What does anoche sueno contigo mean in English?

Last night I dream about you

Actually, "anoche sueño contigo" doesn't make sense grammatically - in it's current form, it literally states: last night I dream about you. "Anoche" means last night, so the verb "soñar" needs to be conjugated correctly.

If the speaker intended to say, "Last night I dreamed about you," it should read in Spanish as, "Anoche soñé contigo."

Now the sentence/phrase makes sense! :-)