Dreaming of embracing someone signifies longevity. If you embrace a deceased person, it still represents a long life. This suggests that certain aspects or relationships in your life may endure. If the deceased person embraces you back, it conveys a deeper meaning, symbolizing some everlasting relationships or memories in your life.
From Imam Muhammad Ibn Seerin's Dictionary of Dreams According to Islamic Inner Traditions â entry "Embrace" (page 140).
Embracing someone in a dream means longevity. Embracing a deceased person also means longevity. If a deceased person embraces the person seeing the dream and does not let go of him in a dream, it
means his death. Embracing a known person in a dream means associating with him. Embracing one's enemy in a dream means making peace with him. It is also said that an embrace in a dream signifies exchanging praises. An embrace in a dream also signifies kindness, liking for one another, travels, arriving from a journey and dispelling distress or anxiety. An embrace in a dream is also interpreted to mean having sexual intercourse. Embracing a woman in a dream means love for the world, and despair from receiving any reward in the hereafter. Embracing a man in a dream signifies lending him support and helping him. Embracing the trunk of a tree in a dream means indulging in hypocrisy. Embracing someone and laying one's head in his lap in a dream means entrusting him with one's capital, or working for him. (Also see Envelope; Hug)
Note: Islamic dream interpretation depends on the dreamer's circumstances and state. This is a general guide drawn directly from the source book.