IPA: /ˈdriːmˌwɜːrld/
KK: /drim-wərld/
A fictional or imaginary place that exists in dreams or fantasies.
In her dreamworld, anything was possible, and she could fly among the stars.
Dreamworld → It is formed from "dream" (from Old English *drēam*, meaning a vision or series of thoughts during sleep) and "world" (from Old English *weorold*, meaning the earth or realm of human existence). The word "dreamworld" refers to a realm or state of existence that is characterized by dreams or dream-like experiences.
Think of a 'vision' ('dream') that exists in a 'realm' ('world') — that's why a dreamworld is a place filled with dreams.
No commonly confused words.