Clothing that is too tight, too small or dating back to childhood suggests that something about your current attitude or approach is holding you back. It may also suggest that you are aiming for more than you can achieve in the present circumstances. For Freudians, tight clothing may indicate a preoccupation with the breasts and buttocks whose shape they reveal. The dreamer wearing loose clothing may be attempting to conceal their true self, but it may also represent a yearning to be free of inhibitions.
If you are wearing formal clothes when everyone else is dressed casually, perhaps you have ideas above your station; alternatively, the dream may be a warning against snobbery. On the other hand, being sloppily dressed in a formal setting may be suggesting that your behavior is damaging your prospects. It is also common to dream about being unable to find a suitable outfit or searching frantically for appropriate clothes; such dreams reflect anxiety about being adequately prepared to meet the obligations and demands placed upon you.
Dreamers dressed in shabby clothes, rags or clothes that have rips and tears may be projecting an image of inferiority or low self- esteem, and the dream may be a warning to build their confidence. A dream of a jumper, cardigan or other woolen garment unraveling may indicate a growing sense of disillusionment with some aspect of your waking life. The unraveling may be a sign that it is time to look to a new direction for inspiration.
If you are aware in your dream of a problem with your clothing, this is a positive sign as it suggests that you are already aware of tensions that are affecting you in waking life.
If you are unaware that you are dressed inappropriately and only notice this on waking, your unconscious is pointing to the source of feelings you have not yet understood. Finally, if you dream that you are wearing clothes remarkably different from your normal wardrobe, the implication is that you are ill at ease with your self-image. The color, style and texture of your clothes may be able to tell you which area of your life needs to be remolded. [1]