Emotional Center:

Recent studies suggest we employ the same neurophysiological mechanisms while dreaming that we use to construct and recall memories while we are awake.

Studies also found that vivid, bizarre and emotionally intense dreams are linked to parts of the amygdala and hip...

There is no one place responsible for phobias in the brain. Many parts of the brain take part. 

However, fear is important to the brain's emotional processing and learning center: known as the amygdala and the hippocampus, with a central role in the process of forming memories...

• The hippocampus is the part of the brain that is involved in forming, organizing, and storing memories. It is a limbic system structure that is particularly important in forming new memories and connecting emotions and senses, such as smell and sound, to memories.