To dream that you are in a talent show indicates that you are recognizing and using your potential and skills. You are acknowledging your abilities and moving toward a new stage in your life. Consider the reaction and behavior of the audience as they symbolise your social circle and support system. If the audience reacts negatively, then it suggests that your friends and family are not supportive of you. Conversely, if the audience reacts positively, then it means that you have a support system to lean on.
To dream that you are watching a talent show suggests that you are not utilizing your full potential. You are watching your own talents go to waste.