For a three-act plot analysis, put on your screenwriter’s hat. Moviemakers know the formula well: at the end of Act One, the main character is drawn in completely to a conflict. During Act Two, she is farthest away from her goals. At the end of Act Three, the story is resolved.
Act I: They May Say He's a Dreamer…
George Orr is your regular everyday guy except for one thing: his dreams change reality. He's sent to Dr. William Haber for therapy.
The doctor doesn't believe him when he reveals his power… but once he's convinced, a terrible chain of events starts. Dr. Haber uses George's power to change the world—the only problem is that things seem to be getting worse, even though what Dr. Haber wants is for things to get better. Better on his terms, that is.
Act II: Maybe Some People Aren't Meant to Dream
Soon it becomes clear that Dr. Haber is obsessed with George's power. George and Heather Lelache, his lawyer and love interest—don't you know it—try to stop Haber, but nothing works. Heather is even dreamed out of existence.
Everything goes really crazy when Dr. Haber figures out how to dream effective dreams himself. Look, the dude nearly destroys the entire world. We don't think anything could get worse than this.
Act III: An Unlikely Hero
Despite being the most passive character in the novel, George musters up every single ounce of courage he has ever had in order to stop Dr. Haber's dream. It almost kills him, but he succeeds.
The world is still pretty messed up from the way the doctor shredded reality, but at least everyone isn't dead. After a while, people get used to the new post-apocalyptic world, George settles into a comfortable job, and the final loose end is tied up when Heather Lelache walks back into his life.