A.S.
Both my kids did that! They would wake up yelling and then call for me. They would call for me until I came in. I would go in and just rub their backs and tell them mom is here and everything is okay and that they are okay! And they would go back to sleep. I think it is just a part of being a child and when they get older will find their own way to comfort themselves until then they need us to tell them they are fine.
I don't think they understand that they are dreams.
My daughter is 4 1/2 and tells me her room tells her stories and at first it freaked me out, but now I know she is talking about her dreams.
I have always had a night light for myself so my kids have had one since the first night they came home! It might help your daughter to wake up and see that see is in her room and familiar things around!! Worth a try!!