Here is the most accurate, poetic yet literal English translation of the full ghazal.

This evokes a memory of the beloved. The beloved used to claim that the sky (or the moon) was their guest, signifying a time when their love was so great that even the heavens paid tribute to them. It contrasts the current state of separation with past unity.

Kal Chaudhvin ki raat thi, shab bhar raha karwat badal Translation: Last night was the night of the fourteenth (full moon), I kept tossing and turning all night long.

The next line, "Aur main Suhane Sapnon Ki Birat Thi," translates to "And I was an assembly of beautiful dreams." The word "Birat" means a gathering or congregation, implying that the singer's dreams were a collective assembly of beautiful thoughts and visions.