THE DREAM DICTIONARY

Dreams where you are falling are some of the most commonly reported dreams there are, and such dreams are one of the leading causes of sudden waking from a dream.
First, let's begin by dispensing with the myth that if you hit the ground in your dreams you will die. There are plenty of fully alive human beings who have reported hitting the ground during their dreams of falling. The fact that these people were around to report this situation is proof that this legend is merely that - a legend.
Dreams of falling are most often interpreted as an indication of unresolved fears, anxieties, instabilities and insecurities. The person who experiences recurrent dreams where he or she is falling may be feeling overwhelmed by and unable to control certain situations in his or her waking life.
For instance, the dreamer may feel that his or her home or work life is out of control, and that he or she is unable to remain on top of the situation. This kind of generalized anxiety can easily manifest itself in a dream where he or she is out of control, such as a falling dream.
Falling often represents a loss of control, or feelings of helplessness on the part of the dreamer. After all, when you fall, you have no control over your direction or your pace. This feeling of being out of control and falling often represents similar feelings in the dreamer's waking life. Therefore those who are troubled by such dreams should be encouraged to examine their life for the source of anxiety and fear, and to confront the situation head on. Doing so often results in a lessening or even an elimination of dreams of falling.
Dreams of falling can also represent a sense of inferiority or a sense of failure in your personal or professional life. This fear could be a fear of failing in school, failing at your job, losing your social status, or failing in a relationship. People experiencing these situations are often troubled by dreams in which they are falling. These dreams of falling can represent a perceived failure to measure up to expectations, or a fear of losing your status, losing an important person in your life, or just a generalized fear or failure.
The strict Freudian interpretation of a dream of falling was that such a dream indicated that the dreamer was contemplating giving into a sexual desire or sexual impulse.
Dreams of falling are most likely to take place during the first stage of sleep. That is because dreams at this stage are often accompanied by spasms of muscles in the arms, the legs or even the whole body. These sudden muscle contractions are known to science as a myclonic jerk. The dreaming mind can interpret these muscle spasms as falling, and thus incorporate falling into the dream state. Often when dreamers experience this myclonic jerk, they awaken at feeling their body twitch. This fast reaction is part of the evolutionary mechanism that allows us to be awakened quickly in the presence of a threatening environment.
Those who do biblical and religious interpretations of dreams often see falling dreams as meaning that the dreamer is taking his or her cues from the world of man instead of turning to God for guidance and advice.