The Dream World is the 46th chapter of Tsubasa: Reservoir Chronicle
He wakes up inside an egg-shaped capsule, and he is unsure about where he is, then he hears someone yell his name. He says back "Fai-san!" "I'm glad you're..". Fai finishes his sentence "still alive?". Fai then explains "We are currently dead in Outo country, but because I died first I managed to learn a few things.." "This isn't Outo country". Syaoran is confused by what he just heard. Fai further explains "Outo country does not actually exist" "This is Eidonisu(Sakura Flower) country's Fairy Park".
Fai continues "After we left Jade Country, we ended up in this amusement park" "This is a place where people in this country come to play". Syaoran says in reply "Then, Outo country is...". Fai answers "I think its called "virtual reality""When you're inside that egg thing, everything is an illusion""Living and fighting inside this virtual reality seems to be a very popular game in this place". Syaoran says "But, it's not entirely true" "The municipality controls the whereabouts of the demons" "Demons only attack demon hunters". Fai replies "Is something strange?" Syaoran continues "Now that I think about it, when Kurogane and I went to the "Dwarf Tower", there was a room made up of a demon" "You couldn't kill it by just slashing at it" "When I lit a fire, the demon burned up". Fai asks "The demon was gone?". Syaoran replies "But the floor was wet""So, demons could be killed by fire, but demon hunters could not be killed by fire". Fai answers "I see, that's really strange". They both walk into a room and Syaoran continues "But why?""Why can't we remember anything from when we first arrived?".
A mysterious figure in the room replies to Syaoran's question "This is for tourists who first play in the "Dream Capsule", to enjoy themselves fully" "We hope the customers will think of the virtual reality as real; therefore, we make certain adjustments according to each user's data". Syaoran looks at the figure and then has a flashback.
Mokona brings them to the Fairy Park, and the group has landed inside the egg capsules. The hostesses ask each one of them if it's their first time, and the game is then set to beginner mode. Once everything is set, the hostesses tell them to just have a good dream. Syaoran doesn't know what is going on and yells wait, but then they are all sucked into the dream world.
The scene is the shifts back to the present, the mysterious figure asks "Do you remember now?". Fai replies "Anyway, we really did think that the other country was real". Syaoran thinks to himself, If that's true, then what about this sword?.
The mysterious figure then disappears. Then, Syaoran and Fai meet the creator of the amusement park, a woman named Chitose. Chitose tells them "I would like to know about the man interfering with the "Dream Capsule" system" "You know that man don't you?" "Please tell me everything you know about his man". Syaoran replies "Why do you want me to?". Chitose says "If things continue this way... this game will not end like a game normally does".