An old friend of Jack, professor Hamill, has made an archaeological discovery of something once belonging to Nocturne, the Crown of Dreams, which can turn reality into someone's dream. When someone captures Hamill, his daughter, Maria, gets the crown and falls into a slumber, that turns reality into her dream. When Amity Park is turned into a crystal castle, Danny finds himself working alongside Nocturne to get the crown, becuase it holds a power that even Nocturne fears... The Nightmare!
- Maria- Professor Hamill's daughter, who wears the crown and appears outside her body in dream form as a princess. She has complete control over reality, Her character is partially based on the boy from Twilight Zone's It's a Good life, when someone angers her, aside from Danny and Nocturne, who are immune to its power, she banishes them into the dream plane.
- Horror Knight- A mysterious warrior serving under the Nightmare
- The Nightmare- The main villain of the story; his true name has been forgotten but has been called the Nightmare for the fact he is now truly a nightmare. He was once an accomplice of Nocturne, however his method were too evil, even for his ally... feeding off nightmares. The crown was once his and he holds a connection to the crown... the more it is worn, the stronger he is growning...