The Moonlight Tower is one of many areas within the dream-scape to which the player can be linked, and can also be the starting point of a dream. It has many flights of stairs leading to a balcony where the player can witness a full moon.
Occasionally, a bird creature can be seen flying around the building. It is normally unreachable, but can be linked with. Sometimes the bird creature can spawn in front of you when exploring the balcony and looking out past the railing. It will link to the Black Space if the player manages to get close enough while it's by the balcony.
It has also been noticed by a lot players that this location influences time in some way, making the dream very short. Reasons for this are still unknown.