That's one way of looking at it. Also note that "Don't dream", as a prohibition, is more 不许做梦, not that there is any situation I can think of to reasonably use this.
We would say "别放弃梦想", which literally means "Don't/Never give up dreaming". "梦想" and “梦” can both carry the meaning of "things someone desire/expect", while the latter more represent the activity of physically dreaming. Which one to use exactly depends more on the habit and less on the syntax.
That is more of "Don't give up on your dreams", the "never" can be better convey with 永远, e.g. ”（要）永不放弃梦想“ or a better alternative.