If you dream of feeling embarrassed about being seen in your underwear, it may suggest an unwillingness to reveal your true feelings, or to have your opinions made public. What color is your dream underwear? Red may reveal hidden passions, yellow a secret fear and so on.
If your underwear is dirty or torn, it may reveal that you are not at ease with yourself right now and feel uncomfortable about your sexuality. Ancient dream oracles suggested that dreams of being in your underwear were an omen of guilty pleasures that would cause much grief. A dream that features nightwear does not necessarily have a sexual connotation; you may simply need more sleep. Pajamas and nightdresses also suggest openness and relaxation. [1]