A compass has long been an instrument to help people find their way. Dreaming of a compass may signify a sense of being lost or trying to find something. Though the compass will never be able to pinpoint and tell you exactly where whatever you may be looking for is, it does give a general sense of direction. This will assist you and give some hints as to where you may be headed. It doesn’t tell you where you are, but it lets you know where you are going generally and thus, the same notion can be applied to the dreamers. They will not know the location of what they search for, but they will have that innate sense that they are close.
Seeing a compass in your dream may also be an indication for you to reflect the path that your current wake self is taking.