A character produced by the mind that appears in your dream. They can range from mindless drones to intellectual equals depending on what purpose they serve in your dream.
These characters are only a part of your deep mind.
Some Dream Characters can be seen as more special than the rest, and often what can happen is that some people have what is known as a Dream Guide.
A Dream Guide is a dream character who helps you, and tends to know more about your dream than the average dream character; some believe that it is a manifestation of your subconscious.
Dream Characters are also called projections in the film inception.