Severe anxiety dreams in a certain type of child in latency and adolescence are described in six cases, of whom those in latency were less able to bring their dreams into the analysis. The parents of these children acted out sexual and aggressive impulses in a guilt-ridden fashion which caused overstimulation, poor ego control, and anxiety in the children. An ego-id alliance seduced the ego-superego forces into using superego demands and ego functions for partial gratification of sadomasochistic sexual drives at all levels of libido development. Because anxiety leads to some gratification, it may take on the nature of an addiction. In this group of children anxiety also served to inhibit a feared full discharge of the impulses for which they hungered but which was fantasied as total destruction of the self.