Hopefully, this helps…
One school of thought (perhaps a borrowing from buddhist ideas) is that we are all expressions of an Infinite Consciousness. We have bodies, but we are not our bodies. We are the energy that inhabits those bodies, and the energy that inhabits my body comes from the same source as the energy that inhabits your body. One can stretch this further and apply this idea to all living things and even further to apply to all things living or nonliving. We are energy piloting bodies to move through experiences, and we can draw upon an awareness of the commonality of that energy.
So if it’s true that we are energy, are our bodies, the people we know and the world around us an simply illusion? Direct experience tells us no. If we’re hit by a car, we are injured. If we pet a dog, we feel good. If we don’t eat, we get hungry. If we are hot, we sit under a tree.
So we feel good and bad things based on our interactions with our environment. The environment is clearly something. It’s not nothing. You seem to feel though, that it might be nothing or that it might just be a dream. For this exercise, try on this idea—that the tree, the dog, the empty stomach, and the car do not exist inherently. The car doesn’t come to be without a series of manufacturing actions. The empty stomach does not come to be without the efforts it has taken to conceive and grow your body to this point and then to abstain from food until you feel hunger. Similarly, the dog and tree do not come to be without their own forms of food and nurturing. All of these phenomena depend on actions, intentions and events that precede them. They are expressions dependent upon the phenomena that preceded them, and they all are constantly changing.
So if they do not exist, they are illusion. If they exist inherently, they cannot change. What we experience is something in between—phenomena that exist, but that change due to their nature of being dependent upon that which precedes them. You exist but not as a fixed point in space. You are a phenomena that is ever changing depending upon the events, intentions and actions that preceded this moment. Your friends exists similarly, as does the world around you. On one level we are expressions of the same energy. On another level, we are directing that energy to manifest the world around us.
For example, if you get good soil, bury a seed, and water the soil, a plant will grow. If you drink too much alcohol in one sitting, you will wake up the next day with a hangover. If the world were illusion and phenomena didn’t exist, it probably wouldn’t matter which you did. If phenomena existed inherently, then we would not be able to conceive of growing a plant or drinking to much. The plant would just exist, and the hangover would just be there. Instead, we know from direct experience that we can grow a plant and induce a hangover. We also know that one experience causes pleasure and the other causes suffering. Through our actions and intentions, we can create or choose pleasure or suffering.
So here’s where you come in as you interact with your friends and with the world. You can create or choose pleasure or suffering, and the canvas you have to work with is the phenomena around you. You can appreciate yourself or neglect yourself. You can appreciate your friends or neglect your friends. You can grow a plant or induce a hangover. You can decide that the world is illusion and suffer as a result, or you can decide that you will perceive the world in a way that gives you pleasure (or freedom from suffering), possibly by recognizing that we are all infused with a common energy and that we have some freedom to decide the manifestations of that energy. (Or, in whatever manner suits you.)
When you slip into feeling as if this is all an illusion or dream, draw this thinking to its conclusion—that it is causing you suffering, and that the suffering is beyond your ability to imagine it as an illusion. Your suffering can be abated by choosing to engage with the web of dependent relationships around you. Beyond that, you can instill pleasure (or freedom from suffering) in yourself and others around you through your actions and intentions. Essentially, you care for yourself and others because it feels good and it diminishes suffering. Drop the ball, and you don’t suddenly get pure illusion (because there is no such thing). You get suffering.
A lot of this comes from How to Practice: The Way to a Meaningful Life by the Dalai Lama.