AbstractBackgroundSleep disturbances have frequently been associated with the full spectrum of psychosis, from psychotic‐like experiences (PLEs) to individuals who meet diagnostic criteria for schizophrenia. Similarly, dissociative experiences have been linked to both sleep disturbances and PLEs.AimThe aim of this study was to examine the role of dissociation in the relationship between sleep quality and PLEs.MethodsPLEs, dissociative symptoms, and sleep quality were examined in 1677 young adults using self‐report measures. A mediation analysis was performed to examine whether dissociative experiences account for some of the relationship between sleep quality and PLEs.ResultsDissociative symptoms significantly mediated the relationship between sleep quality and PLEs, with both age and gender used as covariates.ConclusionThese findings suggest that dissociation may be a key contributor to the relationship between disrupted sleep and PLEs, which could have treatment and identification implications.