The Island of Dreams and Nightmares (aka Island of Dreams and Mab's Island) is an within the dream realm in the middle of the Dream Sea, where Mab could be found. It is an island that cannot be reached in the waking reality.
Behind the scenesEdit
The island gets the full name the Island of Dreams and Nightmares in the King's Quest Companion (but also goes by the Island of Dreams). In the KQ7 script that is only a description for the island and it goes by the proper title Island of Dreams.