Daydream Squidward makes a cameo in the Dance Now! magazine when Squidward puts his head on the dancer.
Dream SpongeBob appears in Squidward's dream as Dream Squidward is playing the clarinet for the king. Dream SpongeBob gets Dream Squidward mad enough to make him break his clarinet. Dream SpongeBob makes himself into a clarinet, and it sounds much more beautiful to the king and the concert audience than Dream Squidward's old clarinet.
He appears in the end along with the other dream characters, yelling at Dream SpongeBob for ruining his dream.
Dream Squidward is sitting in his living room, crying, when a huge Krabby Patty comes to the door. Dream Squidward starts kissing the Krabby Patty, when a montage of them dating, being wedded, having a kid and being old.
It then turns out that Squidward was laying in his bed and it was all a dream.
Daydream Squidward is sitting in a limousine with lots of fans applauding him. He then arrives at a concert hall where he is going to perform. He walks into the building with lots of fans taking pictures of him. He then performs his symphony, which then gets a round of applause from the audience. He then bows at the end of his symphony.