1560s, "full of dreams," hence "associated with dreams," from dream (n.) + -y (2). Sense of "dream-like, vague, indistinct" is by 1848. Meaning "perfect, ideal," is noted as a teen vogue word in 1941, American English teen slang. Compare dreamboat "romantically desirable person;" dream girl, etc. Related: Dreamily; dreaminess.
dreamland
dreamless
dreamscape
dreamt
dream-world
dreamy
drear
dreariness
dreary
dreck
dredge