The present study investigated the cortical regions activated during rapid eye movement (REM) sleep by identifying the sources of electric currents of brain potentials related to rapid eye movements using low-resolution brain electromagnetic tomography (LORETA). The brain potentials measured were the lambda response (P1 and P2) during wakefulness and the lambda-like response (P1r and P2r) during REM sleep. Fifteen healthy university students participated in this study. During wakefulness, the sources of the electric current of the lambda response (P1 and P2) were estimated to be in the primary and secondary visual cortices (BA 17, 18). During REM sleep, the P1r has a source in a higher order visual area (precuneus; BA 7, 31) and P2r comes from the primary and secondary visual cortices (BA 17, 18). In addition, the density of electric current in the premotor and fronto-central regions including anterior cingulate gyrus was higher after rapid eye movements, which was a discriminative feature of REM sleep. The results of this study suggest that these activities that occur after rapid eye movements might underlie the generation of vivid visual images of dreaming.