BackgroundSexual dreams represent a largely underexplored domain of human experience, particularly concerning their prevalence, frequency, and potential relationship with mental health conditions. Understanding this interplay may provide insights into the psychological and physiological effects of dream content.AimsTo investigate the prevalence, frequency, and impact of sexual dreams among individuals with and without mental health diagnoses and to evaluate the associations between sexual dream frequency, post‐dream symptoms, and mental health status.Materials & MethodsThe SLEEP Study surveyed 301 female‐identifying adults in the United States using an online questionnaire. The questionnaire assessed the frequency and content of sexual dreams, as well as post‐dream symptoms such as anxiety, increased heart rate, and muscle tension. Logistic regression and Pearson correlation analyses were conducted to examine relationships between sexual dream frequency, mental health diagnoses, and post‐dream symptoms.Results99.67% of participants reported experiencing sexual dreams, with 45.2% identifying them as frequent. A significant association was observed between frequent sexual dreams and mental health diagnoses (OR = 1.83, p = 0.018). While post‐dream symptoms such as anxiety and physical tension were common, their correlations with mental health treatment were weak and not statistically significant (p = 0.061).DiscussionThe findings suggest that frequent sexual dreams may serve as a psychological stress indicator, particularly in individuals with mental health conditions. However, the weak correlation between post‐dream symptoms and mental health treatment highlights the need for further investigation into the mechanisms underlying these associations.ConclusionFrequent sexual dreams could provide valuable insights into psychological stress and mental health. Incorporating dream patterns into mental health assessments may enhance clinical understanding and interventions. Further research involving diverse populations and experimental methodologies is required to these relationships and their broader implications.