Sleep terrors occur in Stage 4 sleep, while nightmares occur during REM sleep.

Name: Sleep terrors occur in Stage 4 sleep, while nightmares occur during REM sleep.
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Sleep terrors, part of non-REM sleep disturbances, happen during the deep sleep of Stage 3 (previously categorized as Stage 4 before sleep stages were reclassified), while nightmares occur during REM (Rapid Eye Movement) sleep, when most dreaming takes place.

Sleep Terrors Occur in Stage 4 Sleep, While Nightmares Occur