The song's lyrics tell the story of a young man who wants to be romantically involved with the girl of his dreams. But because he cannot do so in reality due to how nervous he is, he can only fantasize about being with her in his dreams; hence the title of the song. In a 2010 interview with Rolling Stone, Weezer frontman Rivers Cuomo said, "I think most of our audience always thought it was a song about a girl when I’m really singing about my artistic process."
The song's lyrics depict a young man yearning for a romantic connection with a girl but struggling with anxiety and finding solace in dreams. This theme of unrequited desire and its impact on an artist's creative process is central to the song.