Tenoroc summons Freddy to eliminate the Street kids in their dreams by summoning Freddy Krueger the king of nightmares.
The Street Kids are having trouble sleeping so Tenoroc wants to make sure they never wake up. So he summons Freddy Krueger and orders him to trap the Street Kids in a Nightmare limbo and make sure that they never wake up. When Matt arrives he sees that the eyes of the Street kids are white, so Matt, Roxie, Gomez, Lightning and Flint, an old member of the Phoenix gang who is free and on Matt's team now go into their dreams.The first dream is a Street Kid running from Freddy Krueger. Matt forgets that Freddy has a advantage in the world of dreams. Freddy sets a trap a door bridge, they need to stand on each door but if it opens they will fall to their destruction.The next dream is Belka, a new Street kid, running from a a giant Freddy. And Lucius's nightmare is Carnival city being destroyed and Tenoroc ruling everything. Now Matt, Roxie, Lightning and Flint use their imagination to fight Freddy. In the end they bring Freddy Kroger into his physical form and he goes hologram.
Dream powers and gloves with claws
If his omnimegagigantrom dream belt is destroyed it will take him to the real world and make him go hologram, love Matt and Roxie kiss for the first time and it makes him weaker and imagination.