Source: The Great Interpretation of Dreams (Ibn Sirin)
Seeing one's deceased friend in a dream indicates his need for prayers and charity. If he is happy, it indicates his good state and the dreamer's good state.
Source: Perfuming Humanity in the Expression of Dreams (Al-Nabulsi)
Seeing one's deceased friend alive indicates the arrival of good news or help.
Source: Signs in the Science of Expressions (Ibn Shaheen)
Seeing one's deceased friend is interpreted as goodness and benefit if he is in a good state.