Hollie Horror’s review published on Letterboxd:
Good horror films (at least the ones I know I'm probably going to like almost instantly) tend to have a decent hook within the first ten minutes and I was surely not disappointed here.
Dream Demon was such a pleasant surprise, not just because it was nothing like I had expected but because the film was pretty much outstanding in the ability to capture the insanity and anxiety of nightmares.
I really, really enjoyed the effects in Dream Demon as well.
This would be a great double feature with another nightmare-realized film, Beyond Dreams Door, although Dream Demon is a much better film I think they would go well together. Just make sure you watch Beyond Dreams Door first because it's not going to stand a chance if you watch it after the other.
My only real problem with this film was the explination/core to the film that ties everything together. The story with Jenny as a young girl, it's a bit muddled and doesn't really answer any questions that still linger. But, honestly, with a film like I have just watched, I'm not going to hold it against it, just something in the sloppy ending I found lacking in comparison to the awesomeness of the rest of the film. Also, I'm pretty sure Diana must have narcolepsy. BUT! With that said, I am glad that it didn't end with Jenny sporting a rediscovered British accent. I had a laugh when Jenny questioned "Torch?" in relationship to a flashlight though, because I had the same reaction.
Finally, I feel it's important to mention that as soon as I saw the investigative reporter with his new, Nightmarish shaped nose and sunken eyes I thought immediately of British electronic artist, Janine Rostron, although I know her as "Planningtorock," her stage name. I've done a side by side comparison for her, here.