Dream-demons are dream-creatures from Dreamlord Loki, or General Loki. It is not sure that if the Kraggle-Scruncher in The Dreams of Dread is a dream demon. Dream demons include Sabre-toothed bananas (it comes from Gipsy's dream), flocks of butterflies made of newspaper, a spotty pink squid, a dense forest made of smelly cheese, flying pink scorpions, the Dung-monster, T. rexes with 10 tails, bear-sized mosquitoes, bushes with teeth (it comes from Teggs' dream), swamp-snakes in a ball gown, flying sharks, small, winged Mammoths with mini cement shooters and raptors in Jet-cycles (from Iggy's dream). But it is unknown that why there aren't any astro-knights from Arx's dream.