In Jungian psychology, strangers in dreams often represent aspects of the shadow—the repository of qualities and tendencies that have been rejected from conscious identity. Dream work involving strangers can facilitate integration of these disowned parts and promote psychological wholeness. From a developmental perspective, stranger dreams may connect to the infant's experience of differentiating self from other. These dreams might process ongoing development of our understanding of self in relation to others, particularly during periods of identity formation or transition. Some psychologists note that stranger dreams increase during times of transition or when exploring new social environments. These dreams may help process the information overload and identity adjustments that come with encountering new social contexts.

The archetype of "the stranger" appears in mythology and literature across cultures, often as a disguised deity, trickster, or agent of transformation who tests the protagonist or brings unexpected change. Dream strangers may connect to this archetypal pattern. Many cultural narratives involve learning to differentiate between dangerous strangers and beneficial ones. Dream encounters with strangers may reflect this discernment process and our cultural ambivalence about the unknown. In contemporary global society, we encounter more strangers than at any previous point in human history. Dreams about strangers may process our attempts to navigate increasingly complex social networks and the tension between connection and anonymity.