The Dream World is Freddy's main domain. He takes his victims to the area to torment and kill them. In the dream world Freddy is powerful to the point of invincibility, able to withstand any injury that would normally harm or kill a normal person. He is able to manipulate his victims' dreams to whatever he sees fit, mostly in the form of his victims' personality and/or fears. Any injury that his victims sustain in the dream word affected them in the waking world as well, and if they die in their dreams, they are dead for real.

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