In the waking state, in the absence of meta-awareness, mind wandering with specific contents can lead to negative mood. Such negative mood can be incorporated into dreaming according to the continuity hypothesis of dreaming. In this paper we argue that in the presence of what we call ‘sustained phenomenal meta-awareness’, negative mood would not follow mind wandering in waking. Sustained phenomenal meta-awareness has a non-sensory, non-affective phenomenal character. It is essentially intransitive, prereflectively self-aware, non-propositional, non-conceptual and devoid of subject-object structure. (...) In other words, this unique kind of meta-awareness is non-representational. Evidence is then provided that such sustained phenomenal meta-awareness can be incorporated into the subsequent dream state as non-dual lucid dreaming in which, again, no negative mood would arise. Based on the latter observation, we have coined the term ‘mindful mind wandering’ and defined it as mind wandering in the presence of sustained phenomenal meta-awareness. We argue that not only does mindful mind wandering not lead to negative mood in waking, but also its incorporation into dreaming, as non-dual lucid dreaming, result in a state that is free of negative affection. (shrink)