Sorry to hear about your little one's bad dreams :(
This is what helped me. I put a Bad Dream Kit under my daughter's bed when she was about 3. A shoebox with a notebook and crayon, trial-size spray bottle, and a mini flashlight. The notebook/crayon was for drawing bad dreams, which she tore up into pieces and tossed away. The spray bottle sprayed invisible monster "keep away" vapors(I don't trust small kids unattended with liquids so it's empty). The flashlight was a ray gun.
Usually this resolved most of her dream issues without waking me and after a few months she never touched it again but kept it just in case. Then she passed it on to her little brother when he started having nightmares. He's 5 now and is giving it to his 3yr old cousin for his birthday.
BTW, all the stuff can be purchased cheap at the dollar or cute inexpensive decorated ones at Walmart or Target.
Good luck!