Like the album's successor, What to Do When You Are Dead (2005), Dream to Make Believe is a concept album. Its themes include the dream world, sleepwalking, and how to keep the things you want as long as you stay asleep.
The album spawned two music videos: the title track, "Dream to Make Believe", as well as "My Town".
Armor for Sleep signed to Equal Vision in February 2003. Demos of songs that would feature on the album were hosted on the group's website.Dream to Make Believe was released through Equal Vision on June 3. In November and December, the group supported Vendetta Red.