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Sueño vs. ensueño

The Spanish language has multiple words that can be used to express the concept of dream, primarily sueño and ensueño. Although they share the same root, there are subtle differences in meaning and usage between these terms.

Sueño

A2
The term sueño might be used to refer to both the physiological process of dreaming during sleep and the figurative sense of personal goals or aspirations.
Tengo un sueño muy extraño anoche.
(I had a very strange dream last night.)
Mi mayor sueño es viajar por todo el mundo.
(My biggest dream is to travel around the world.)

Ensueño

B2
Ensueño is a more poetic or literary term that refers to a dream-like state, an illusion, or a daydream. It can also denote something unreal or fantastic that exists only in the imagination.
Fue como un ensueño vivir en París durante un año.
(Living in Paris for a year was like a dream.)
Se perdió en un ensueño mientras miraba el océano.
(She lost herself in a daydream as she stared at the ocean.)

Summary

Sueño and ensueño are both Spanish words related to dreams. However, sueño is more commonly used to describe dreams we have when sleeping and our ambitions, while ensueño has a more poetic connotation, portraying dream-like states, illusions, and daydreams.