A sleep quality management apparatus includes a sensor module and a processing unit. The sensor module is configured to provide a heart rate signal and a skin conductance signal. The processing unit is coupled to the sensor module. The processing unit is configured to determine a sleep stage and a stress level according to the heart rate signal and the skin conductance signal so as to identify a stressful dream occurrence. The stressful dream occurrence is identified when the sleep stage corresponds to a rapid eye movement (REM) stage and the stress level corresponds to a stressful state.
