Warning: There are spoilers ahead for Dream Productions.

TheInside Outspinoff seriesDream Productionshas expanded the animated franchise in compelling new ways, especially with the ending. Set betweenInside OutandInside Out 2,Dream Productionsreveals how dreams are made in the mind of Riley (Kensington Tallman). While Joy (Amy Poehler) and the other original emotions from Headquarters do appear,Dream Productions' main charactersinside Riley’s mind are Paula Persimmon (Paula Pell) and Xeni (Richard Ayoade), two dream directors whose directing styles clash as they attempt to create the best dreams for her.

When the head of Dream Productions, Jean Dewberry (Maya Rudolph), insists on directing a nightmare for Riley that could have devastating consequences, Paula and Xeni must put aside their differences to help Riley. With help from Paula’s former assistant dream director, Janelle (Ally Maki), Paula and Xeni are able to prevent the nightmare from unfolding. It is through this thatPixar’sInside Outspinofftakes an unexpected turn as the intended nightmare turns into a lucid dream for Riley.

A composite image of Paula holding a camera in front of Paula and the crew smiling at a memory orb in Dream Productions

Riley’s Lucid Dream Explained

Paula Turns Off The Reality Distortion Filter

When it seems that all hope is lost, Paula takes Xeni’s earlier suggestion, and turns off the reality distortion filter from the Riley camera. The reality distortion filter is what creates the dreamlike quality. With the filter turned off, Riley is able to see that the terrifying nightmare she was having was just a dream. The nightmare transforms into a beautiful lucid dream, meaningRiley is aware that she is dreaming, and is now able to control the events within the dream. This gives her the power to shrink the towering mermaid unicorn clamshell into a tiny, harmless toy.

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Paula and the other dream creators are transported inside the lucid dream, where Paula reminds Riley that she is in control. This realization empowers Riley to make the dream the way she wants it to be, turning it into a joyful, colorful dance with glitter raining from above. Even though Riley does not remember the lucid dream when she wakes up, it subconsciously gives her the confidence she needs to go to the school dance with her friends despite her previous anxieties about it.

Joy Sadness Anger and Fear Gathered Together in Inside Out 2

What Happens To Paula, Xeni, Jean & Janelle In Dream Productions?

There Are Several Promotions And Demotions

Following the success of Riley’s lucid dream, Dream Productions undergoes extensive changes involving Paula, Xeni, Jean, and Janelle. Jean is demoted from being the Head of Productions to becoming a sandwich trainee, a move that is made by Anger (Lewis Black), who is happy to see her dethroned from her position. Janelle and Xeni are able to fulfill their ambitions of being dream directors as they use their creativity to give Riley the best experiences possible. Meanwhile,Paula receives her most significant promotion yet through replacing Jeanas the head of Dream Productions.

Paula realizes that Riley’s dreams require a balance of escapism and a way to prepare for reality.

Paula Persimmon winking in Dream Productions

Despite their previous conflict, Paula is now fully supportive of Xeni and even has a framed picture with him on the desk of her new office. She and Xeni now see eye-to-eye, regardless of their creative differences, because they recognize that they both want what is best for Riley. Paula is also now fully supportive of Janelle being a lead dream director and has stopped trying to force her former assistant back into her previous position. Moving forward, Paula realizes that Riley’s dreams require a balance of escapism and a way to prepare for reality.

How Dream Productions Sets Up Inside Out 2

Dream Productions Fleshes Out Riley’s Friendships And Sets The Stage For Anxiety

Even thoughDream Productionswas released afterInside Out 2, the series' placement in the franchise’s timeline means that it sets up developments for the sequel. One of the main ways it sets upInside Out 2is Riley being torn between clinging to her childhood and becoming a more mature teenager. Paula is a part of Riley’s mind that still wants to hold onto aspects of her childhood, including dreams infused with glitter, Rainbow Unicorn, and cupcakes. Meanwhile, others in Dream Productions are intent on incorporating more “mature” elements.

Dream Productions

Jul 19, 2025

This paves the way for Riley’s internal struggle, especially while at hockey camp, in the sequel. Her anxieties about the school dance tease the emergence of Anxiety (Maya Hawke) and all ofInside Out 2’s new emotions. Dream Productions is alsothe franchise’s first chronological introduction to Riley’s friends Bree (Sumayyah Nuriddin-Greenand) and Grace(Grace Lu), who are pivotal inInside Out 2after not being in the first movie. The strength of Riley’s friendship with them shines through inDream Productions, and adds more weight to learning in the sequel that they will be attending a different high school.

Will There Be A Dream Productions Season 2?

There Is More For The Series To Explore

There is currently no confirmation ofDream Productionsgetting a season 2. However, the series' premise, season 1’s ending, and the ongoing popularity of theInside Outfranchise make season 2 a viable possibility. The next season canshow how Riley’s dreams change now that Dream Productions is under Paula’s leadership, along with the creative freedom given to Xeni, Janelle, and the other directors. Changes in Riley’s dreams could also be affected by the events ofInside Out 2.

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Dream Productionsseason 2 could be the perfect way to bridge the gap betweenInside Out 2’s endingand the all-but-inevitableInside Out 3. The evolution of Riley’s dreams can demonstrate how she has evolved before the next period of her life that will be explored in the third movie. While Paula, Xeni, and others within Dream Productions would likely continue to be the main characters, season 2 could still feature appearances from Joy and the other original emotions, along with Anxiety and the emotions introduced inInside Out 2.

A composite image of Riley looking excited in front of the emotions crammed together in a small space in Inside Out 2

The Real Meaning Of Dream Productions’ Ending

Identity And Emotion Are Multifaceted

Dream Productions' ending isconsistent with theInside Outmovies' emphasis on validating all emotions and all parts of one’s personality. When Riley has control during her lucid dream, she chooses to incorporate aspects from her childhood like glitter and Rainbow Unicorn, but she also chooses to dress like a teenager and experience the joys of a school dance. It is possible to enjoy things too often dismissed as childish and to be more mature. Both ends of this spectrum are important and valid, which is the same lesson taught aboutRiley’s emotions in the movies.

Riley applies this agency and confidence to her everyday life as seen through her choice to attend the dance.

Paula smiling against backdrop of Dream Productions studio gates

The lucid dream is also a reminder that no matter how powerless one feels, no one ever completely loses their agency. Despite how powerless she feels at times, Riley is reminded of this invaluable lesson by Paula turning off the reality distortion filter. This does not just apply to dreams, as Riley applies this agency and confidence to her everyday life as seen through her choice to attend the dance.Dream Productionsis another example of Pixar teaching universal lessons for all ages in an entertaining and heartfelt fashion.

Set in the whimsical world of Riley’s mind, this Inside Out spin-off series follows the crew at Dream Productions, the studio responsible for creating Riley’s dreams and nightmares. As they craft cinematic experiences each night, the team faces unexpected challenges, blending humor and creativity in a vivid exploration of the subconscious​.

Dream Productions (2025)