In the world of dreams the rules of reality do not necessarily apply. Each dream is unique and it's a direct link to the soul and spirit. Psychology provides its own theories on what dreams mean, but so did tradition and the study of dreams for thousands of years before any relevant science had developed.
Dream Meanings - Smoke
If you see smoke coming from your house, be careful as someone will betray your trust. If you are surrounded by smoke and find it difficult to breath then you will have difficulties.