SOLVED. Children's Picture Book about a small man that takes a child on an adventure

[Cheyenne]

This is a children's book from the 90s, I believe. I have a photo of myself holding the book open to an illustration but it's too blurry to make out much detail or words. I cannot remember the name of any of the characters. It has a boy in light blue pajamas who is in bed and a small man in yellow clothes and a red hat comes through his window (it could be The Sandman?) and they go on an adventure in the sky I believe? There is also a tall, thin villain that shows up that wears a blue/purply striped suit and a pointed hat and he is SCARY at one point. This bad guy also rides a train (and may also become the train at one point?) and the boy has to choose to not be afraid of him anymore to get him to go away. I wish I could add the photo. The climax of the story is in the cloud filled sky.
It is not the book Little Nemo, The Sandman or The Goodnight Train. The train belongs to the scary bad guy!

[Cheyenne]

FOUND; Not sure how to delete or edit for an update as I'm not on here a lot but it was Mr. Night Time and the Dream Machine!

[Rainbowheart]

Glad you found it!

Mr. Nighttime and the Dream Machine for the link.

No need to delete. We like to keep threads in case other people come looking for the same book later.