M.C.
My daughter started dreaming at this age. She would wake up crying several times during the night and I believe it was because she was afraid of the dreams. I don't think they were nightmares. She just didn't understand what was going on in her mind. It took a few months of me going into her room, checking on her, telling her that it was night night time, she was safe and I would see her in the morning. Like I said after about 3 months she went back to sleeping like she used to. She will turn 3 next week and some mornings she will wake up and tell me stories. I am pretty sure they are what she was dreaming about.
Some nights it would be 4 or 5 time. I was not getting any sleep, but eventually it slowed down. We also tried sleeping somewhere else, but my daughter thought it was play time too. As I said, it took some unhappy nights for a while, but we are all back to sleeping through the night on a regular basis and in our own beds. Hurray. Hang in there!