i believe my dog had dreams. He would bark and move his legs while sleeping.
Yes, their eyes move around under their eyelids and their legs twitch. Ours would make soft whimpering sounds or very soft and short barks, almost like snorts.
BTW, don't disturb them when they are in a REM state (dream). They get very confused and sometime irritated. They may even start barking for real or snap at anything near by until they "come out of it" and are fully awake. We used to say they were chasing rabbits.
