A dream with a carnival or fair may signify an urge for self-gratification or unrestrained pleasure. It can also represent a need for social attention or the need to convince others of something, even though the dreamer may not want it themselves.
A fair in a dream also signifies material pleasures such as money, food and sexual gratification that have been denied by conscious life.
Also, the fair’s purpose is to distract from the corruption, poverty and injustices of society. If you think about it, we go to these types of places for fun and for a distraction from the problems of life. In a dream, this can be seen as an escape from reality. The contrast between the dark, ugly, or difficult experiences of life contrasted with the light, beautiful, or easy rewards.