Last night I had a dream that had my cousin in it. He asked if I remembered this event that happened in another dream he was in. Is it possible for people in your dreams to have memories of other dreams they are in? Or is it your subconscious working to make your dreams feel more real?
There are no more people in dreams than girls on the internet. What you can remember or construct, so can your mind associate it with an individual. Basic logic works or seems to work till you're sufficiently awake to spot the fallacies.
Also, watch inception. Fun film about dreams.