Dream logs are logs obtained when you cut Dream trees using the Woodcutting skill. Cutting these logs grants no experience and they cannot be burned or fletched. Their sole purpose is in the Lunar Diplomacy quest whilst doing a challenge in the Dream World. It is not possible to take these out from the Dream World, although there used to be a glitch that allowed doing so.
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For an exhaustive list of all known sources for this item, see here
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