I saw my sister's daughter that have passed away recently in a house and it was kind of dark in there. and she was dressed nicely. She came over to me and hugged and kissed me, while her mother is standing in the distance watching us, and I thought to myself that her mother would be so happy she was back to life
Dreams hold very personal and symbolic meanings, so it's important to interpret them in the context of your own emotions and experiences. In general, however, this dream seems to reflect your longing for the presence and connection with your niece who has passed away.
The dimly lit house could represent the sense of sadness, grief, or mystery surrounding her death. Seeing her dressed nicely could signify a sense of peace, happiness, or contentment in her afterlife. Her approaching you with a hug and a kiss indicates a desire for reassurance and closeness with you in the dream.
The presence of her mother in the distance suggests that she is still watching over her daughter, even though she couldn't physically embrace her in the dream. Your thought about her mother being happy may symbolize your belief that your niece is at peace and that her mother would find comfort in that.
Overall, this dream may reflect your subconscious processing of grief and the longing to feel connected to your niece again. It can be seen as a comforting sign that she is at peace, and your desire for her mother's happiness reflects your empathy and care for her in her time of loss.