To dream that someone or something is evil represents a negative aspect of your personality. Negative thinking patterns or situations in your life. It may reflect fears, desires, hate, anger, jealousy, or guilt that you need to confront. Your own ill intentions towards someone else.
Alternatively, evil people may reflect people or situations that you feel are out to get you, are mean, or that scare you.
To dream that you are evil represents awareness that you are doing something wrong. Alternatively, it may reflect guilt or regret you have for something you did.
Evil people in a dream can often times reflect difficulty with powerful addictions.
Example: A person had recurring dreams of being evil. In real life they had powerful feelings of regret for something they did to a friend. They felt that they will never have the chance to explain themself or be forgiven.