Dreaming of a sparrow can symbolize freedom, small joys, and the significance of little things in life. The interpretation of this dream may vary based on your current circumstances, emotions, and experiences. Your personal feelings and experiences related to sparrows can help you understand the meaning of this dream. Ultimately, the significance of this dream is connected to your individual experiences, emotions, and the present state of your life.
From Imam Muhammad Ibn Seerin's Dictionary of Dreams According to Islamic Inner Traditions â entry "Sparrow" (page 403).
A sparrow or a hawk in a dream represents an ignorant and unjust ruler. Both command lesser controlling domains than the eagle. Holding a sparrow or a hawk in a dream means that one will capture a thief. If one sees himself producing a sparrow or a hawk out of his urethral canal, it means that he will bore a son who will possess courageous and frivolous character. Holding a sparrow in a dream also means choosing a community of elders and volunteering one's services. (Also see Hawk)
Note: Islamic dream interpretation depends on the dreamer's circumstances and state. This is a general guide drawn directly from the source book.