Owl

The Owl dream is as mysterious and intringuing as it is small, being undoubtedly the smallest dream in the entire game. The dream consists of two circular platforms, a strange orb floating above the second, a large group of blocks that slowly generate next to eachother behind the 12th House, and the "owl" itself, staring far away from the normally accessible part of the dream.

The owl is meant to be a representation of Josafa, who watches the Sleepwalker silently and from afar, whilst keeping his presence known. If the Tech Sack is used on the very edge of the second platform facing Josafa, it will reveal the ghost of Clovis, who presumably arrived at this dream, and thereafter disappeared.

In earlier versions of the game, the orb had a chance to give you a temporary version of the Surefire Slingshot upon touching it, or a Pear, with the latter being incredibly rare.

If anyone in the server enters this dream while wearing the Stage Prop hat that Morgeta wears, then the heads of all players in the server will turn into an enlarged version of it, likely just being a silly easter egg.