If you dream of defeat, it may reflect some challenges in your life. Such dreams remind you that you might feel helpless in certain situations. However, defeat doesn't mean the end; it also offers you a chance to return with strength and courage. It's time to rejuvenate your confidence and determination.
From Imam Muhammad Ibn Seerin's Dictionary of Dreams According to Islamic Inner Traditions â entry "Defeat" (page 116).
If a believer sees himself defeated in a dream, it means that he will wear the helmet of a warrior and win the battle against his enemy. Ifone sees himself defeated and shows no fear in the dream, it means his death. Ifone sees soldiers retreating into a city to take shelter therein in a dream, it means that they will ultimately win their war, even if their cause is unjust or if they represented a tyrant, though they will ultimately have to pay for their crimes. If one sees the soldiers of ajust ruler entering a city defeated in a dream, it means that they will surely be victorious over their enemy. (Also see Losing a fight)
Note: Islamic dream interpretation depends on the dreamer's circumstances and state. This is a general guide drawn directly from the source book.