Use it to describe experiences or situations that cause discomfort or distress, like a real bad dream would. Listening to the eerie music felt like a bad dream.
Pro Tip 2/3
Intensity Matters
Best used for situations that are deeply upsetting rather than just mildly unpleasant. The news of the accident was like a bad dream.
Pro Tip 3/3
Not Literal
It's a figurative expression and doesn't mean the speaker actually had a bad dream about the situation. The chaotic day at work was like a bad dream.