I'm a huge fan of the 1986 movie, "Labyrinth" as of recently. However, one huge thing that has been bugging especially after reading alot of various intakes on the film is the following: did Sarah really go on that adventure, or was it a dream? I'd really like to hope that it did in fact occur. I tried thinking about it, however either way, something conflicts with the other points. For example, it could be possible that Sarah dreamed everything up due to everything in her room portraying something she encountered along her adventure. Or, the characters and themes she encountered could have all been aspects of Sarah's personality in physical manifestation on her journey of self discovery.
However, moving over to the conflicting side, if this was all a dream, why was Jareth present in owl form without Sarah noticing at the very beginning of the movie in addition to the end watching her without her knowledge? If Sarah really did dream everything up, wouldn't she not dream him up, especially at the end? Plus, if she did dream all of the negative aspects up of her dream, wouldn't she be aware of the things that were occurring that were only presented to the viewer and not her, if this was form her personal view? In addition to this, could it have been possible regarding the explanation of the likeliness of the things in her room could be due to Jareth somehow conjuring up this world using her imagination as a template? Could that be why everything she encountered was similar to what she had in her room -- Jareth used everything alongside her dreams, wishes, and imagination? Plus, it feels a bit empty if it were all a dream.
Sorry if it's so long, but what do you think?