Seeing incense in your dream symbolizes good friendships. If you dream of lighting incense, it may indicate the beginning of a healthy relationship in your life. Additionally, seeing an incense holder suggests a proven and commendable aspect in your life. This dream hints at revitalizing your social life.
From Imam Muhammad Ibn Seerin's Dictionary of Dreams According to Islamic Inner Traditions â entry "Incense" (page 222).
Perfuming oneself with sweet incense in a dream means having a good friendship. An incense burner or holder in a dream represents a certitude that is praiseworthy. Perfume in a dream basically means good, though to a bedridden person it means death. This category includes: amber, henna plant (Lawsonia inermis, bot.), or fumigating oneself with sweet incense, though there is a danger that could arise from the smoke in the dream. Perfuming oneself with amber in a dream means increase in earnings that will come through the labor of a rich person who is associated with the one seeing the dream. The seeds of any dark colored perfume such as carnation, clove, or their powder, etcetera, means receiving praises. The elements encompassed herein include: richness after poverty, knowledge after ignorance, peace with one's adversaries, bribery, divulging one's secrets, ingratiating oneself to a superior for personal gains, or adulation. Incense in a dream also represents the heat of one's love or passion. In a dream, perfuming oneself with incense also means using an amulet or a charm to repel jealousy, or to break through the stratagem of sorcery. Incense in a dream also means using charm to bring peace, tranquility and profits if one intends so in his dream. (Also see Aloe perfume; Civet; Frankincense; 'Ud)
Note: Islamic dream interpretation depends on the dreamer's circumstances and state. This is a general guide drawn directly from the source book.