In one of Lovecraft 's tales , The Call of Cthulhu , he said that Cthulhu currently lies in a dreamlike state in the sunken city of R ` lyeh ( rill-ee-yeh ) , waiting for the time when the Old Ones shall rise again . The cult is noted for chanting the phrase `` Ph ` nglui mglw ` nafh Cthulhu R ` lyeh wgah ` nagl fhtagn '' , which translates as `` In his house at R ` lyeh , dead Cthulhu waits dreaming . '' This is often shortened to `` Cthulhu fhtagn '' , which might possibly mean `` Cthulhu waits '' , `` Cthulhu dreams '' , or `` Cthulhu waits dreaming . ''