He remembered this place.
It was the place he regained his conscious in when he came up to the surface of the ocean for the very first time. It was the living room of that girl's house. Everything was just as he remembered: the pure white walls, the pale yellow floor, the faint scent of delicious fish soup...
"Oh, you're awake!"
Lugia blinked a few times and saw someone familiar sitting at the couch. It was the girl who had found him and rescued him when he was injured during his first adventure in the world above water. He stared in horror as the girl walk over to him.
"I was starting to wonder when you'd wake up." The girl giggled a few times. Now that she was a lot closer, Lugia couldn't see any form of expression through her eyes; they looked just like a dead fish's eyes. Lifeless and dull.
He took a step back, trying to make some space. The girl crooked her head to the side, smiling thinly as she gazed up at the silver legendary.
"What's wrong? Does your arm still hurt?"
She placed her hand onto Lugia's right arm. The ice cold touch caused him to wince and jerk his hand away. That was then he realized her skin looked gray.
"Do I feel cold? How mean." She giggled a bit before taking a step closer to Lugia and stare at him with wide eyes.
"But that's only because it's your fault."
Lugia yelped as he watched the girl suddenly started to twist around grotesquely, joints bending in abnormal ways. He stumbled back a few steps as he watched in horror as what was his friend once upon a time was now a heap of flesh with her head, screaming in pain. Lugia shut his eyes closed and covered his ears in attempt to block out the sight, and dropped to his knees as he started shaking his head.
"No...No no no!! Go away!"
Without thinking, Lugia raised his hands and shot a beam of Aeroblast at the monster. The monster shrieked in pain before growing silent. Lugia peered his eyes slightly open to see if the monster was gone, only to see more lifeless bodies, this time trying to make their way towards where he was, twisting their limbs around as they came closer.
"Get away from me..!!!" The last word was mixed with a roar as he finally lost it, and started blasting Aeroblast in all directions in attempt to keep them away.
----
While being in the dream world, Lugia was actually using Aeroblast around in his room as he rolled around and yelling in his sleep, causing to destroy a wall and a few trees right outside the building.