Children who suffer from frequent nightmares or bouts of night terrors may be at an increased risk of psychotic experiences in adolescence, according to new research. shows that children reporting frequent nightmares before the age of 12 were three and a half times more likely to suffer from psychotic experiences in early adolescence. Similarly, experiencing night terrors doubled the risk of such problems, including hallucinations, interrupted thoughts or delusions. Younger children, between two and nine years old, who had persistent nightmares reported by parents had up to one and a half times increased risk of developing psychotic experiences.

Source: Frequent childhood nightmares may indicate an increased risk of psychotic traits