Mentally Unstable dream meaning is explained below using 1 different source. Each interpretation is shown with its source.

Interpretation 1 — Nancy Wagaman

Dreaming that you’re mentally unstable can represent a feeling or fear of: Not being able to think clearly or logically.

Others not accepting you.

Being unable or unwilling to deal with your life right now (as in frustration, overwhelm, or a low tolerance for problems or responsibilities).

Someone else being mentally unstable can mean you’re attributing to them one of the things just mentioned, or you feel that a situation or person seems unpredictable or “off” somehow.

This could also be an indicator of a Toxic Dream.

See Unstable, Confused, Disabled, Weird

Source: The Curious Dreamer’s Dream Dictionary Author: Nancy Wagaman