The Dreamstone is a sacred magical jewel, and the means to send good dreams across the planet.
The Dreamstone was created from the Planet Dreamstone, where all Dreamstones and Dreammakers came from. It's ability acts as a beacon, when The Dream Maker pours his Dream Bubbles created for sleeping residents onto the Dreamstone, it's magic beams can send the dreams they contain to sleepers everywhere. It's power is also used to draw away nightmare giving Argoribbles and can neutralize even Zordrak. It is been said that without The Dreamstone, good dreams could not exist!
The Dreamstone is the most powerful and important object in the land, possibly even the universe, it's powers negated only by The Nightmare Stone (according to Zordrak, it's powers can also be corrupted by dark entities such as those on the Nightmare Planet, as he intends to do on occasion). It's powers eventually run thin however, and recharge is required, a task that must be provided directly by the Planet Dreamstone.
While in earlier episodes it is not valued much outside it's ability to bring dreams, later episodes elaborate more on the potential power it could grant to bearers, with several villains wishing to take it so as to control the universe.
- Mike Jupp inspiration for The Dreamstone came from a large glass paperweight that his family owned.