Sleep is a status in Xenoblade Chronicles and Future Connected. A sleeping enemy cannot move, attack, or use arts. Attacking a sleeping enemy will result in a guaranteed critical hit and wake them up, ending the effect early for a bit of bonus damage. However, if the enemy also has a damage-over-time debuff active (e.g. Blaze), the damage will awaken them without any bonus. Sleeping enemies also have the timers paused on any break, topple, or daze that is in effect on them. Some enemies can inflict Sleep on the party, with all the same effects. Party members can help each other to remove the Sleep status, and unlike the other statuses, it can be blocked by Debuff Immunity.
Sleeping an enemy that's the source of an active vision will delay the vision until the sleep wears off, and the enemy will use a different art. This may result in getting a vision for something that would normally be too weak to trigger a vision.