Dreaming about death is very common. Death is a natural part of our lives and affects each one of us that it is no surprise to be a part of our dreams. Dreams are sometimes a place in which our minds explore concepts or situations that we fear, or are unable to process with our conscious selves. A recent death in the family is likely to inspire dreams of the lost loved one, particularly if there are still unresolved conflicts between you and the one you've lost.
To encounter someone who has died in one of your dreams is an attempt to resolve conflicts which you were unable to deal with while the person was alive. They may also be appearing to you in a dream because you are missing something about them. For example, you may have felt very close to your grandfather before he died. Perhaps you used to go to him for advice and guidance. When you undergo stress in your daily life, your mind might remember how much consolation and assistance he gave you and bring him back in a dream. Listen carefully to any advice given to you by a ghost in a dream. These words are what your mind imagines that loved one would have said. The dream is trying to give you the consolation that you need. This is a natural part of the grieving process.
It is also common to feel that you are dead in a dream. You look around and understand that the world you are seeing does not meet your expectations of reality. A dream, of course, is not reality but sometimes instead of realizing that this is a dream, your mind jumps to the conclusion that you are dead and seeing the afterlife.
You may dream that you are dead and watching your friends and family grieve for you, and continuing their lives. These dreams are also related to the fact that your mind is confused about why it cannot control your body movement since you are actually motionless sleeping in your bed. This can also be a way for you to examine your feelings of loneliness or uselessness if you are struggling with feelings of inadequacy in your waking life.