Thank you for your response. I never thought about the basement representing the subconscious, although I don't think that I have remembered any other dreams where I went into the basement. I would not consider my grandmother a guide or role model since I don't agree with a lot of her beliefs, and she is part of the reason my mom was messed up which caused me additional stress.

However, the person that is usually chasing me in my dreams is my younger sister (she made my life hell when I was younger) and I think my dreams of her chasing me didn't start until after I moved out of my house (started college).

If your idea about the demons being something from my past that is blocking me, I wonder if it could have anything to do with the missing memories that I have from my childhood. I want to regain them so that I know what happened, though I am not sure if I am ready yet. At the same time, recovering those memories could help me heal from it. I honestly wondered if the dream could have been a partial memory. Maybe my younger sister was the evil demon child, and I was the other? Maybe it was some sort of memory that involved my grandmother? Maybe the other child was actually my other sister (the one that was nicer) and something bad happened in the basement?

I am just throwing out ideas. I can't know anything for sure until I can remember things. I feel like a normal person would get super emotional talking about things like this, but I think I am over the anxiety and fear of not knowing, so I am perfectly fine with talking about it.