My dog actually tries to tell me when it's bedtime. Maddie sleeps in my bed almost every night. I think she actually helps me sleep better. She does dream. Sometimes she runs and barks in her sleep. It doesn't bother me. When I get out of bed at 3am she goes out and I feed her. Then she gets right back in my bed. If I have company she will lie down next to them.
Now here's what the experts say: Germ expert Dr. Jack Gilbert from the University of Chicago says it's unhealthy to sleep in bed with your dog in some cases. Dogs do run in the dirt, eat gross stuff and get up close to disgusting things to smell them. However, germs are not the main problem. It's allergens. Sleeping with allergens is a drag on your system.
However, it has been show interacting with our pets releases Oxytocin the "feel good" hormone. So if your pets help you relax that's a good thing. As far as germs go. Dogs to expose us to more kinds of bacteria which actually can boost the immune system. So does that mean I can thank my dog for not getting sick that often?
The final word seems to be: if sleeping with your dog makes you happy. Just keep doing it.
Source: Women's Health