OK, this might seem a bit odd to do, but my second child (now 8) went thru much the same thing at about 5 and NOTHING I did or said seemed to help, except... One day, in the afternoon (NOT right before bedtime) I sat down and said this; "Honey, Mommy has to tell you something. You see, monsters ARE real. We parents tell our kids that they aren't so our kids don't get scared of them because they ARE really mean. But the big secret is that they are really (here I held up my thumb and first finger as far apart as they could go) about this big. And they are all purple. And they live in Canada, not America, because our government won't let them live here. Sometimes they sneak across the border and try to scare kids, and even though they are kinda small, they are good at scaring kids. But because they are so small, that is why we never REALLY see them. The thing is, now that you know their secret, they will be scared of YOU because you can just squish 'em. And that's what they are REALLY afraid of, being smooshed, so that is why they scare kids, so that the kids will run away and hide and be scared of them." It pretty much went on in that vein, and I KNOW that sounds weird but you know what? It totally worked. I'm not big on telling falsehoods to my kids but seriously, I was at my wits end with this no sleeping thing. And the thing is, I told this story often enough that my younger two really never became afraid of monsters because they "knew the truth", so to speak. Anyway, I don't know if you want to try this but it worked for me!