A Dictionary of Dream Symbols

by Eric Ackroyd
(1) Being possessed by bad spirits represents neurosis (where psychic contents flood the conscious mind) or psychosis (where the conscious mind is drowned in the flood).

(2) Being possessed by a good spirit may represent (the possibility of) submitting to a ‘higher’ self than the ego; allowing creative forces from your unconscious to take a leading and guiding role in your life.