Yes, cats dream, when you see them twitching there tail, paw, eyes and whisker, that means they are dreaming. Nothing to worry about, all my three cats dream and I know they are dreaming about mices and chasing them. Also, and the good food they are going to get. I see it all the time at my shelter, where the cats are dreaming. Exactly someone ask me about it, they thought the cat was having a seizures and I said no, they are dreaming.