Combining Hobson's activation synthesis hypothesis with Solms' findings, the continual-activation theory of dreaming presented by Jie Zhang proposes that dreaming is a result of brain activation and synthesis; at the same time, dreaming and REM sleep are controlled by different brain mechanisms. Zhang hypothesizes that the function of sleep is to process, encode and transfer the data from the short-term memory to the long-term memory, though there is not much evidence backing up this so-called "consolidation." NREM sleep processes the conscious-related memory (declarative memory), and REM sleep processes the unconscious related memory (procedural memory).

Zhang assumes that during REM sleep, the unconscious part of a brain is busy processing the procedural memory; meanwhile, the level of activation in the conscious part of the brain will descend to a very low level as the inputs from the sensory are basically disconnected. This will trigger the "continual-activation" mechanism to generate a data stream from the memory stores to flow through the conscious part of the brain. Zhang suggests that this pulse-like brain activation is the inducer of each dream. He proposes that, with the involvement of the brain associative thinking system, dreaming is, thereafter, self-maintained with the dreamer's own thinking until the next pulse of memory insertion. This explains why dreams have both characteristics of continuity (within a dream) and sudden changes (between two dreams).