Lucid Dreams literally mean a dream in which you are aware of your dream state.
Heh!! Confused?? If you hadn't yet had a lucid dream, you may find it difficult to imagine what it's like, though you must experience it to know what it really feels like, as they say he who eats knows the taste, you can never get the sense of the experience by comparing the lucid dream state to the state you are in right now. Its a very extensive and rich area of research and alternative reality which i am going to present to you. First of all and everything, observe your reality. Look around, SEE the different colors and objects taking all aspects of the entire visible world. LISTEN the different sounds around you, close your eyes and listen inventively and now become aware of the sensation of TOUCH. How do your clothes feel? The sensation of sitting and standing, the touch of air on your skin. Notice how your body feels right NOW, lethargic or energetic. Does it feel so every time? And now feel TASTE. Grab a bite of something and appreciate the sensation of taste, does everything taste like this every time? What actually are you tasting, sweet, sour, cool, hot, spicy, bitter?? Now sniff the air and determine the sensation of SMELL. Do you smell of all odor or a soft smell of the soil after a rainfall. Remember and imagine as many smells as you can coffee, sweat, incense, your favorite perfume and so on. Now focus on your breathing. A moment ago, you were not even consciously aware of your breathing. Even though you have inhaled and exhaled around 50 times since you started reading the article. Now take a deep breath and hold it for a second and then let it out. What is that being consciously aware of your breath allows you to deliberately alter your breathing. Now become aware of your FEELINGS. What emotions and moods are you feeling right now? Remember the difference between anger and joy, love and hatred, stupidity and intelligence and as many as other emotions you care to feel. How real do the moods feel when you imagine them. Now attend to your THOUGHTS. What were you thinking while reading this article? What are you thinking now? Are you aware that your experiences of your world always includes "YOU" It's not just see, feel, think, smell, Its I see, I feel, I think, I smell. You are not what you think, see, feel; You have these experiences, perhaps most essentially , "YOU ARE WHO IS AWARE". You are always at the centre of your reality though you may not be consciously aware of it yourself. Finally now "BECOME AWARE OF YOUR AWARENESS". How does your renewed appreciation of the richness of ordinary waking consciousness relate to lucid dreams. Just like by being aware of your breathing you could consciously alter it so goes with your dreams. Much of what you have just observed about your present experience of the world applies as well to the dream reality. If you were dreaming now, you could be experiencing a multi-sensory world as rich as you are experiencing right now. You could see, hear, feel, taste , think and be just like you are now. There is a difference though between dreaming and waking experiences. The multi-sensory world you experience while dreaming originates internally within your mind rather than externally from the world outside yourself. While you are awake most of what you perceive corresponds to actual people and objects and events in the external world because the object perceived in the waking stage exists independently of your mind so they remain stable for example, if you look again at the at the objects that you observed around earlier, most of them will still be there unchanged. However, dream reality is not so consistent because there is not stable sensory stimulation to help your mind build the world you experienced. If you are in a lucid dream, your experiences of the world will be even more different from waking life. First of all, you will know it's all a dream because of this you will be more likely to notice how the world rearranges and transforms. Things impossible in waking life would happen in lucid dream. Once you know it to be unreal, it might increase clarity and brilliance until you find yourself dumbfounded with wonder.
If you are fully lucid, you would realize that entire dream was your own creation and with that awareness will come a exhilarating sense of freedom. Nothing external, no laws of physics or society would constrain your experience. You could do anything your mind could conceive.
In the process the sense of understanding yourself and life increases. Thus by waking in your dreams you can wake in your life.