Dream pop is a type of alternative rock that originated in Britain in the early 1980s, when bands like Cocteau Twins, The Chameleons, The Passions, Dead Can Dance, Dif Juz, Lowlife and A.R. Kane (to whom the term has been attributed) began fusing post-punk experiments with bittersweet pop melodies into sensual, sonically-ambitious soundscapes. The term was only used in the United States, although frequently used, and allegedly coined, by Melody Maker journalists Simon Reynolds and Chris Roberts. An "all-star" dream pop collective named This Mortal Coil were known for covering obscure pop songs of the 1960s to '80s.

Overall, the 4AD record label is the one most associated with dream pop, though others such as Creation, Projekt, Fontana, Bedazzled, Vernon Yard, and Slumberland also released significant records in the genre.