Poor Drake!

To answer your question.. yes, I think dogs can have nightmares and dream.

In fact, Kia woke me up last night too!! Around 4 a.m., I woke up to whimpering and found Kia laying on the floor by the bed with her legs twitching. I woke her and she jumped up on the bed and curled up at my feet.

I must of had a bad dream myself because I woke up to find myself sleeping next to Kia's toy hedgehog and her still at my feet.

I guess the hedgehog will protect us.