Usually this indicates that your grandmother is in an adjacent astral world, waiting for the next move which is usually a human body.
If someone who is deceased has not gone to a higher dimension or a heavenly world, that person will be stuck in an adjacent astral place and after some time, will again come out in this world as somebody's baby. That somebody is usually a relative, a grand child or some relation of the family.
Orient your mind to accepting the dream encounters as real, and relate to her in a compassionate way in terms of her need for another body. Right now the culture dictates that there be only a few children and that we should wait until we secure a college degree and a career before begetting children, since they get in the way of these aspirations, so anyone who needs a body is in a position of needing sympathy, since there are less and less opportunities, even in the family those persons served in.
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