History

The Plains Indians say:

You hang them by the window or at the end of your bed. he bad dreams get caught in the web. The good dreams work their way through the hole in the center, rest on the feather like a dew drop, and evaporate into the Great Spirit in the morning sun. The prayer beads on the Dream Catcher trap all the bad dreams that are left on the web. The prayer beads then burn them up.

I read a few times that it is a debate from which tribe the dream catcher originated from.

The are many different Indian cultures but all call the dream catcher part of their arts history.

The hoop is said to represent strength and unity.

Dream catchers are not meant to last. They are made from sinew and willow, eventually the willow dries out and the sinew falls loose.

The original web dream catcher of the Ojibwa was intended to teach natural wisdom

Source: http://www.dream-catchers.org/