"Reality" is what we take to be true. What we take to be true is what we believe. What we believe is based upon our perceptions. What we perceive depends on what we look for. What we look for depends on what we think. What we think depends on what we perceive. What we perceive determines what we believe. What we believe determines what we take to be true. What we take to be true is our reality." http://viewonbuddhism.org/resources/mountemptiness.html
Whenever things seem to happen that contradict our logical conclusion, we tend to think of magic and mystery. So our dreamlike conceptual scenario is "The Truth".
“Sentient beings, self and others, enemies and dear ones—all are made by thoughts. It is like seeing a rope and mistaking it for a snake. When we think that the rope is a snake, we are scared, but once we see that we are looking at a rope, our fear dissipates. We have been deluded by our thoughts. Likewise, mentally fabricating self and others, we generate attachment and aversion.” ~Dilgo Khyentse Rinpoche