Since when did psychologists have a better understanding of dreams?

The 20th century.

Austrian psychologist Freud was the first person to give a comprehensive explanation of dreams. This is a great man in the field of psychology. He used to work with Marx. Einstein was considered as one of the three Jews who had the greatest influence on the 20th century. After Freud, the new interpretation of dreams was more or less influenced by him. Although the new explanation often opposes and criticizes Freud, it is also inspired by Freud's dream theory. This makes any book about dreams today have to talk about Freud's interpretation of dreams.