Dreaming about a yarmulke signifies protection, spirituality, and welcoming. In many cultures, it is believed that wearing a yarmulke shows appreciation to the prevailing religion or esteemed prophet.
The yarmulke in a dream may also represent the idea of success, achievements, and blessings. Similar head coverings has been referenced in dreams of people around the world with an idea of upholding the continuity of religious observance.
Some may see themselves wearing a yarmulke in a dream as a representation of both protection and good fortune, implying things like protection from misfortunes, and even gaining prosperity.