Dreams are hallucinatory activity occurring during sleep that nearly everyone experiences. To understand and research dreams, the field needs a reliable and valid dream assessment tool. The current, most used, measure (Hall and Van de Castle measure) has presented with various reliability and validity issues since its development in 1966. I propose adapting the DIAMONDS taxonomy for situational characteristics to assess dream content. The validation process of this adapted measure has begun with foundational work informing the development of dream-specific subscales. In two preliminary studies I provide some evidence for substantive and structural validity of the adapted measure. Interim data analysis (n=53) in a larger study begins to establish its external validity as it relates to the measure’s ability to predict next-day affect. The completion of this study should present some evidence of all phases of the validation process, therefore providing the field with a novel validated dream assessment tool.