This dream sequence takes place just as the team reaches Esthar after having traveled through the Great Salt Lake.
You’ll have the opportunity to select which team members will be the stand-ins for Laguna, Kiros and Ward. Select your two other party members to get started.
The first few scenes of this dream sequence involve Laguna talking with the various other NPCs (the guard, the other prisoner, the Moomba) to progress the story forward.
Start off by talking to the guard near the elevator on the right side of the screen and then talk to the guard blocking the door at the bock. Then talk to the Moomba (the little orange creature) a few times.
Talk to the guy in the green shirt next and then talk to the Moomba one more time. You will now have to face off against an Esthar Solider; a mind-numbingly easy battle if you have put any effort into leveling up your characters.
Kiros and Ward will join up with Laguna and then the three will be thrown into another battle against two Esthar Soldiers and a Gesper. Again, this is a very easy fight. Following the second battle, take the team and follow the other prisoner and the Moomba into the elevator on the right side of the screen.
You’ll arrive in a laboratory-like room behind Dr. Odine and his two assistants. Keep approaching the group and then moving away and then approaching them again until you overhear a total of 3 conversations.
Following that, they will have a brief discussion about a Weapons Monthly magazine. Laguna, Kiros and Ward will all exit the Laboratory and will meet up with the prisoner from earlier and the Moomba.
Use the Save Point to save your game and use the Draw Point to pick up some Death magic if you need it. Go back into the Lunatic Pandora Laboratory and grab the 
Weapons Monthly, 1st Issue lying on the ground.
Take the elevator back down and you will encounter Dr. Odine in the area where the dream sequence first started. After confronting him, you’ll be thrown into another battle with two more Esthar Soldiers and an Elastoid (another very easy fight).
Jump into the elevator that Dr. Odine hops into after the battle has concluded and follow him back up to the top floor of the laboratory.
There are two more Esthar Soldiers to fight after you hop into the car. Use the Draw Point at the back of the room to pick up some 
Double magic, and then sit down on the contraption in the middle of the room. This is a floating platform that will transport the crew to the next area. One more fight with two Soldiers.
Go through the door and approach the glass wall at the back of the room. As Laguna peers through the glass he will spot Ellone sitting in the middle of the room. Go back and examine the panel on the right side of the screen and just keep pressing the buttons on it until an “[Unlocked]” message appears on the screen.
Now ride the floating platform back to the previous area, use the Draw Point if you missed it, and then go through the doorway at the back of this room (going past the prisoner from before) to get in and rescue Ellone.
That’s the end of this dream sequence! Time to get back to the events unfolding in Esthar with Edea and the rest of the crew.
