Sleepers awakened during REM or rapid eye movement sleep recall dreaming 74 - 95% of the time.  We spend 20 - 25% of our sleep time in REM sleep and most of it occurs during the early morning hours.  There is a general suppression of voluntary muscle activity (except in the eyes) so sleep walking is unlikely during this sleep stage.  It is thought that certain types of memory processing occurs during REM sleep.  Interestingly, drugs such as alcohol and barbiturates suppress REM sleep.
 

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