Midnight Patrol: Adventures in the Dream Zone (1990)

Each Night, Potsworth the dog and his 4 friends, Carter his owner, Keiko, Rosie, and Nick go to sleep and enter the realm known as the Dream Zone. There, they become the Midnight Patrol, and they help keep peace and order in the Dream Zone. All the while, foiling the evil ambitions of the dimwitted Nightmare Prince, whose goal is to ruin everyone's dreams.