Khandie Khain is the princess of nightmares, and was kidnapped by the Nightmare Queen when she was young. She used to be a very good girl until the Nightmare Queen took her as her "daughter". She had numerous relatives, Shugga Khain, her mother, Honey Khain and her father, Father Khain. She is a small child, but has the ability to float. She transformed Battleon into a nightmarish version of it, by forcing a Sandman work for her. She allied with Zorbak the Moglin Necromancer, and she has a Zorbak plushie toy. She wanted to destroy Frostvale.
She hired Sandy Claws and Frosty to work for her, but later Zorbak fired them as they were no longer of any good to her, leading the two to ally with the hero, which led to her downfall.
She also commands a considerable amount of nightmare plush toys, which she uses as protectors and pets. Because she hates her name, she has numerous superflous titles, including: "Royal Majesty," "The Empress of Dreams," "Dictator of Fancy," and "Sovereign of the Night" (including others names}. She also insists to be called "Royal Majesty Queen of All Dreams and Ruler of the Slumber Realms."
With the help of King Tralin, she is looking for her real parents, but she still loves the Nightmare Queen as her mother. She got to the Nightmare Kingdom due to a mysterious tornado taking her. The Nightmare Queen said that she receives excellent education in the Nightmare Realm.