Dreams are rarely, if ever, literal. It does not foretell the future.
Rather, a child represents many things: hopes, dreams, new beginnings....
Our own child takes on additional layers of meaning, including protectiveness, parental fears, a desire to protect innocence, etc.
When we dream of any child, it most often represents our own "internal child", the child each of us carries inside throughout life. Our inner child may hold our fears, our dreams, our hopes, etc. Inner child also represents, remembers, and acts on our feelings of playfulness, curiOSity, inquisitiveness, daring, adventure, etc.
When we dream of death, it can represent a transformation process going on in your life. When we dream of the death of "our" child, it's most likely the inner child who is calling attention to the changes we're going through. The dream grabs our attention! It makes us sit up and take notice because of how we end up feeling about "my child dying" -- for example, most moms who have their first dream about "my child is dead" feel panic, fear, Horror, sadness, desperation, confusion.
BUT when new moms recognize that even though the dream used the image of our real child, the dream is not about her or him--- but about our own inner child.
Only the dreamer can review what changes and stresses are going on in real life that demand he/she pay attention and work through the changes. But, as some examples:
-- A mother of a 2-yr old dreams her (real) child has "died". As she thinks about her real life, she realizes she hasn't had much time as an adult to play, to be childlike, and to enjoy just "being". That's what 2-yr olds do--- but many people think that to "be an adult" we have to squash those playful feelings. This mom realizes that from the dream, she feels "dead" inside and wants to re-experience her own playfulness in life.
-- A father of a 22-yr old Marine fears his son will be killed in war and dreams his son has "died". Of course the father awakens in a panic, maybe even crying in anguish! But as the father thinks about the dream, he realizes he has many fears about losing the hopes and dreams he's always held about his son. Then, he realizes the hopes and dreams he placed on his son are not his son's at all-- they are the father's hopes and dreams about himself! The father always did what others told him to do; he took a job he didn't like; he married because he was "expected" to marry; and so on. Finally, the father decides if he stays in the job he hates, and stays married to a woman he doesn't love, he is bound to face the "death of his own inner child". He knows he has to make changes that will forever affect (change) his life.
-- The same reasoning holds when a grandparent dreams a grandchild (or any child) has "died". Something is either changing in their life, will be changing, or.... that they need to change. The "death" of one aspect of their life doesn't mean the body dies--- it only means some type of change and transformation.
Usually, once a person has made changes he or she needs to make in life, death dreams go away.
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