From the opening passages of the novel, Santiago is shown to be someone who places great stock in the power of dreams. Though he is just a shepherd with a small flock of sheep, he dreams of a fortune buried in a distant land. He returned to the ruined church and lies down to sleep in the expectation that he will dream the same dream again. He is invested in the power of dreams, demonstrating to the audience the importance of dreams and omens before there is even a hint of magic. From this point, the dream obsesses Santiago so much that he visits a fortune teller to have it interpreted and then speaks to Melchizedek; both encourage Santiago to pursue his dreams, ratifying the importance of dreams in the early stages of the novel.

While Santiago’s dream of buried treasure is a very specific dream and one that is important to the text, there is also a wider, more general appreciation for the power of dreams that informs the core theme of the text. According to this theme, young people’s dreams and ambitions should not be allowed to stall, as this will lead to regrets later in life.