Nightmare is an ancient demon who once confronted Doctor Strange on his attempts to escape the Dream Dimension. He failed and remained trapped for years.
After a while, Nightmare escaped the Dream Dimension and induced New York City residents into an endless sleep and fed on their nightmares. When Doctor Strange brought Spider-Man and Iron Fist to the Dream Dimension, he approached them with Dreamstalker and send the Dreamons after them and fought against Strange.
After Iron Fist and Spider-Man appeared in the dream world of K'un-Lun, he transformed into Shou-Lao and tried to scare off Iron Fist and pushed Spider-man to Strange. He scared Strange into believing him that he was powerless. Nightmare grew bigger and conjured up the nightmare for Spider-Man, the death of Uncle Ben. Nightmare was in shock when Spider-Man didn't show any fear. After he was slammed through a wall, Nightmare grew weaker of his weakness that was realized by Spider-Man that he becomes weaker after the victim realizes that it's a nightmare. Iron Fist defeated the Shou-Lao dragon Nightmare. After that, Nightmare was sealed into a box by the combined efforts of Strange, Spider-Man and Iron Fist.
- Mystical Barrier