Parents ask this more than anyone else, and they usually get sentiment back rather than an answer. There are actually three separate questions bundled inside it, and they have different answers, so it is worth separating them.
The tradition, which is closer than you might think
Start with the fact most people do not know. The Ojibwe original was made specifically for infants. It was hung on or above a cradleboard, the frame in which a baby was carried and slept, and the associated figure of Asibikaashi, the Spider Woman, watched over the children of the people.
So a dream catcher in a child's room is not a modern misapplication of an adult object. It is closer to the original use than a dream catcher in an adult bedroom is. That is a genuinely nice thing to know when you hang one.
The safety question, which is the real one
This is where parents should focus, and the guidance is straightforward.
Never hang anything directly above a cot. Not a dream catcher, not a mobile with long cords, not anything that could fall in. Place it on a wall clear of the cot, out of reach from inside it, remembering that reach extends considerably once a child can stand.
Keep cords and hanging loops short. Anything cord like within reach of a cot is a genuine hazard rather than a fussy precaution, and the same principle behind blind cord safety applies here. Trim long hanging tails or tie them up out of reach.
Use a proper fixing. A nursery is not the room to find out an adhesive hook has let go in the night. Into a stud or with an appropriate plasterboard fixing, checked by hand before you leave the room.
And avoid anything with small detachable parts. Beads worked into a web are fine while the web is intact, and worth checking occasionally as the piece ages.

The dust question
Children's rooms are often the dustiest in a house, between soft toys, carpet and the general life of the room. A woven hanging adds surface area for dust to land on, which matters more if a child has asthma or an allergy.
Cotton macrame is the easier option here, since it shakes out and takes a soft vacuum brush, whereas feathers hold dust and cannot be cleaned properly. Our macrame dream catchers are cotton cord with no feathers at all, which is one practical reason parents tend to choose them.
Clean it two or three times a year and keep it away from directly above a radiator, as our guide to cleaning a dream catcher explains.
Explaining it to a child
Children ask what it is, and the answer you give is worth a moment's thought, because a made up story is a missed opportunity.
The true version is better than the invented one anyway. It comes from the Ojibwe people, who live around the Great Lakes in North America. There is a story about a spider woman who looked after the children while they slept, and when she could not reach them all, the mothers and grandmothers made webs like hers to hang above the babies. That is a good story, it is true, and it takes thirty seconds.
It also does something worth doing: it tells a child that objects come from somewhere and belong to someone, which is a habit of mind that serves them well later.
The cultural question, honestly
Views differ and there is no single Native position. Some Ojibwe people regard mass produced dream catchers as appropriation. Others take a more relaxed view, particularly where the origin is acknowledged. A recurring thread in the criticism is less about individuals owning one and more about businesses profiting without attribution.
For a nursery specifically, our honest view is this. If you hang one, know where it comes from and tell your child the real story. If you want a piece made within the tradition, buy from a Native artisan, which is easily done and sends the money to the right place. And if the question sits uncomfortably with you, a plain woven wall hanging does the same decorative job with none of it.
Ours are macrame wall hangings inspired by the form rather than traditional pieces, which we set out fully in what the Ojibwe dream catcher actually was.
Questions people ask
Is a dream catcher suitable for a nursery?
The original object was made for infants and hung above a cradleboard, so a child's room is closer to the traditional use than an adult bedroom. The practical safety rules matter more than the suitability.
Can I hang a dream catcher above a cot?
No. Never hang anything directly above a cot. Place it on a wall clear of the cot and out of reach, remembering that reach extends a long way once a child can stand.
Are dream catchers safe for children?
With sensible placement, yes. Keep cords and hanging loops short and out of reach, use a proper wall fixing rather than an adhesive hook, and check occasionally that beads remain secure.
What should I tell my child a dream catcher is?
The true story, which is better than the invented ones. It comes from the Ojibwe people of the Great Lakes, and it relates to a spider woman who watched over sleeping children, with mothers weaving webs like hers when she could not reach them all.
Are feathers a problem in a child's room?
They hold dust and cannot be cleaned properly, which matters if a child has asthma or an allergy. Cotton macrame shakes out and takes a soft vacuum brush, which is why it suits a nursery better.