Pain in dreams

unless you still feel the pain after you wake up

What i think that's happening here is that the pain you feel is pain that you could inflict on yourself in your sleep i.e. punching or pinching yourself.

This is the same as sleep talking or even sleep walking. In sleep talking, you say the same things in your sleep as you do in your dream. Here, you're physically doing the same things in your sleep as you are in your dream.

well obviously in your dreams you feel whats happining in them just like you see and hear them its normal