Is it normal to dream while awake?
When I wake up from sleeping I gradually fade from my dream to waking state. Upon waking up my dream starts fading away for about 15-20 minutes. This isn't the same as sleep paralysis. I will often get out of bed and start my day while still somewhat dreaming. For that time after waking I experience visual illusions where the waking state pieces itself back together. Usually stuff moves and I notice more images in patterns than usual. An example would be the tiles on the floor move around in the bathroom and everything shifts around. Visual and auditory illusions are more noticeable.
Other than just dreaming while awake upon waking up I also gradually start dreaming while falling asleep while aware of what is happening. Sometimes I even dream while wide awake, for example I will be driving on the highway while simotaniously snowboarding in another world. I'm not sure if this is the same thing as people describe as "day dreaming" or not.