What do I need to know and do about night-terrors?

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Night terrors typically begin in children between the ages of 3 and 8 years old. Night terrors are a type of sleep disorder that can cause a child to wake up in a state of extreme fear and panic. During a night terror, a child may cry, thrash around, or even sit up in bed, but they are not fully awake and will not remember the episode in the morning. Night terrors are different from nightmares, as nightmares happen during the dream stage of sleep (REM sleep) and the child can remember the dream. While night terrors happen during non-REM sleep, and the child is often inconsolable and not able to be fully awakened.
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What do I need to know and do about night-terrors?