Can hallucinations create experiences we have in our dreams?

During hallucinations, you can experience certain experiences and mental states you had in the past.  These experiences and mental states can be brought back to you during a hallucination.  But can this also include the altered and strange mental states we experience in our dreams and nightmares?

In nightmares, for example, you are able to experience these completely altered mental states which are horrible.  There is no way to describe what they are like.  They are entirely new experiences unlike any other.  So I am wondering if these mental states can be experienced during your waking life during a hallucination.

I am wondering if these mental states can only be experienced during the dream state or if they can actually be experienced during a hallucination during your waking life.