Hi S.,
I have a 4 year old that has had night terrors since an infant. There were nights she'd wake up screaming her head off and you could tell it wasn't pain...it wasn't her just waking up or hungry. If someone was here when it happened like my mom or dad, people she saw all the time and they spoke to her, she'd look at them like they were strangers and scream. It was like she couldn't handle seeing anyone. I was the only one able to calm her. I'd have to take her to the bedroom and lay her frontwards on my lap and just talk softly and calm and sway back and forth and she'd go right back to sleep. NO ONE could come in the room or she'd scream again. It was like she couldn't get out of the dream. It was really weird. Always made my parents feel bad, because they could calm her in any other fashion. My husband too and she wanted nothing to do with anyone. They could see this terror in her eyes. It was SO sad. My husband said he had night terrors as a child. I had really bad dreams and still have very realistic dreams. It's sad to see them have to deal with this, because I know how I feel when I wake up.
My point. I recently read an article in a book about children's dreams and how they start with animals then they get older and it switches to real life things that can happen. This mom took a journal of her child's dreams. When the child would have a bad dream, she would tell "mommy" and mommy would grab and pen and paper and write it down. Somehow that calmed the child and/or took her mind off the dream and turned it more like a story she was telling. I think this mom wrote her daughters dreams for YEARS!!!
My daughter, now 4, still has dreams and for me to just listen and talk and discuss them as if they're real, but tell her silly things like daddy's going to beat up the octopus. Her most recent dream...and octopus was getting her. She came to my room and said, I couldn't find you in my dream, where were you. Made me feel like...gosh...did I do something wrong in real life to make her feel like I couldn't be there. (I do work more now that's she's older even though it's still mostly from home) Dreams are so real for some people and others it's not a big deal.
Anyway if you want, message me your email address and I'll scan in the article about the dreams and maybe it'll help you learn more and help your little one.
Good luck!
J.