The market for widely popular services like astrology, dream interpretation, MBTI Type 16 personality testing, and other self-help tools has grown as young people’s interest in “self-exploration” has grown and they become increasingly interested in understanding or healing themselves through many means. Since dreams can reveal hidden stress, suppressed feelings, and even trauma, dream interpretation has gained popularity as a gentle psychological therapy technique. Through the interpretation of the data and the guiding of the image, the Dream Image—which is created from desensitized dream data—visualizes the dreams of young people in the community and seeks to investigate their impact on mental health. In order to examine the relationship between desensitized dream data and artificial intelligence image generation, the image integrates AIGC, data desensitization, data visualization, and 3D real-time rendering approaches. AIGC created the “dream image” in order to more vividly depict the psychological state of young people. The experimental and statistical results indicate that this AIGC-based visual representation of dream data can improve participants’ quality of life and sense of well-being by fostering a positive mindset and healthy coping mechanisms, as well as improving their self-knowledge and ability to manage their emotions.