Senses working during dreams

[Fnaar]

I rarely remember my dreams, but one I remember from my childhood, was dreaming that I did a poo in the shape of the British Isles.

 

[Zoiders]

Studies into PTSD have also shown smell to be one of the strongest triggers for flash backs so the sense of smell is definitely stored away in there as part of the memories that form dreams in the first place, be they waking dreams or ones when people are asleep.