Its not as bad as it sounds, and it was not a nightmare, but I have always loved to dream and could always remember my dreams very well and wished to keep dreaming, however when a certain dream comes along I will think about it for days wondering what it means for it will ever happen. Here is how the dream goes. I was with friends, (most of them younger than me) and we were playing in a street. This street was clustered with shops and attractions crammed in close together. My friends would walk down the street and look inside and we all seemed to have a really good time. Then in this street we came to this dark and black tall house in the left side of the street. I told the children not to look inside or go in, which they obeyed. However I did not. I walked in and the front of the home which was very dark, and it seem to have a feel of something for the 1920s. It seemed very ordinary. However a very tall skinny man stood in the middle of the room. He was in a cold sweet from head to toe. His hair was slick black, and I could not remember any other features other than he wasn't really attractive. Yet I was drawn to him. I remember telling myself how ugly he was yet as he walked over and sat in his long chair and I got on my knees and laid my head affectionly on his lap. He would not touch me but he said he enjoyed my touch very much. I remember getting up once and him saying to come back, that he loved when I touched him and needed it. So again, I knelt down and rested my head on his lap. I remember I could feel his cold sweat on his legs and thinking it was gross. He got up and told me he needed me but I have to go back to his friends. He said he would always be watching me as he gave me a key to his dark home. I left, and as I was locking the door behind me he said, in my mind (I know werid) Do not ever unlock the door when I am not here. I wanted to ask why but I had the feeling that I knew something terrible would happen if I disobeyed him. So I went back to my friends. We continued on the streets and shopped and played, and I played the uke for them and they seemed happy. Yet in the back of my mind I was dieing to get back to the man. I couldn't be happy, and I desired him, yet I never went back. What does it mean?
The "demon" in your dream sounds like a part of yourself that you have learned to repress - maybe because of society - but that you want to get to know better. I think the dream is telling you that you that you need to understand and accept that aspect of yourself.