Have you ever had a dream in which you remember a particular event or thing that in real life never happened? It is hard to explain but here is an example: I dreamt I was walking along a road and saw an orange/brown house. I then said to my brother, "there is that boring house we saw the other day." In real life I had never seen that house. I think that false memories are the brain's way of explaining certain unfamiliar events in dreams. If the brain didn't create these pesky false memories, we would all be having lucid dreams much more often because we would question things a lot more!