A new and distinct cultivar of Lavandula stoechas L. named `Dream` originated as seedling from a controlled cross between Lavandula stoechas L. `Cellers` and an unnamed Lavandula stoechas L. The terminal inflorescences of the cultivar `Dream` have showy top bracts which are R.H.S. 76A (violet group) at maturity. `Dream` also has a compact growth habit.