L.K.
My daughter broke her night time pacifier habit around 2 1/2 and this is how we did it- (this was suggested to me by another mom)
We had 2 pacifiers (or "papas") left. We told her that the papa "fairy" (like tooth fairy) came when boys and girls were ready to give up their pacifiers (they save them for other little baby brothers and sisters). The first night, the papa fairy came and left a toy by her crib and the first papa was gone. The next night a really special toy was left by her bed and the last papa was gone. The papa fairy also left her a nice note about what a big girl she was. She did REALLY well with this! Much better than expected and no issue with sleeping. Every once in a while, she would express some interest but it quickly passed. I did wait until I thought she was really ready to give it up. It annoyed me at the time, but now that she is 5 the pacifier is a distant memory. I will probably let my 1 year old have it in the crib until she is ready to give it up too. GOOD luck!!