To dream of telepathy or being able to read other people's minds represents an area of your life where there is an unspoken understanding. Feeling that it's easy to read other people's wishes or intentions. Feeling that you are easily understood without having to explain yourself. Being psychologically "in tune" with others.
Alternatively, telepathy in a dream may reflect relationships or best friends that you feel "just get you."
Negatively, mind reading may reflect uncomfortable feelings about being easily understood by someone you don't know anything about. Alternatively, it may reflect your own superior ability to read other people whose mindset you don't approve of. Easily determining someone else is arrogant, selfish, or jealous by their body language or behavior. Knowing exactly what someone else is thinking and not liking it.
Example: A young man dreamed of seeing a person on a bus telling him that he could "talk us telepathically if you want to." In waking life he was hanging out with a person who he felt was a good friend who understood him without having to say a lot, even the the person wasn't proving their friendship in any meaningful way.