The second evolutionary contribution that the REM-sleep dreaming state fuels is creativity. NREM sleep helps transfer and make safe newly learned information into long-term storage sites of the brain. But it is REM sleep that takes these freshly minted memories and begins colliding them with the entire back catalog of your lifes autobiography. These mnemonic collisions during REM sleep spark new creative insights as novel links are forged between unrelated pieces of information. Sleep cycle by sleep cycle, REM sleep helps construct vast associative networks of information within the brain. REM sleep can even take a step back, so to speak, and divine overarching insights and gist: something akin to general knowledgethat is, what a collection of information means as a whole, not just an inert back catalogue of facts. We can awake the next morning with new solutions to previously intractable problems

Why We Sleep by Matthew Walker