It's weird... At some point during the dream I acknowledge the fact that it is only a dream and not reality (I literally think it in my dream). Then at some point I acknowledge (within the dream) that I must remember the dream when I wake up in the morning.

If I am having a nightmare I usually wake up mid dream with tears streaming out of my eyes and completely devastated. This usually leads to a moment of fear about going back to sleep to return to that horrible nightmare, then a stern talking to about the fact that the dream will change and to stop being a goose and go back to sleep.

But I have also had hilarious dreams in the past.

I once had this dream that I was running from a dragon. In this dream, I knew that the only way to get away from it was to flap my arms and fly (I know, dragons can fly too!!)... So I began to flap and was rising off the ground in my dream... But I woke up and was flapping my arms in my sleep!! I actually laughed when I realised what I was doing.