"...participants who exhibited more low frequency theta waves in the frontal lobes were also more likely to remember their dreams... This finding is interesting because the increased frontal theta activity the researchers observed looks just like the successful encoding and retrieval of autobiographical memories seen while we are awake. That is, it is the same electrical oscillations in the frontal cortex that make the recollection of episodic memories (e.g., things that happened to you) possible. Thus, these findings suggest that the neurophysiological mechanisms that we employ while dreaming (and recalling dreams) are the same as when we construct and retrieve memories while we are awake."
"...dreams help regulate traffic on that fragile bridge which connects our experiences with our emotions and memories."
The Science Behind Dreaming: Scientific American