Difficulty With Dreams/Reality

Lately, my psychotic symptoms have begun to increase. This usually happens after a few months on an antipsychotic, so I am always being put on new medications. I have been on a regiment of Serequel and Risperdol for about 6 months. The Serequel works well at keeping my auditory hallucinations under control. The Risperdol was prescribed to aid me with visual hallucinations and thought processes. I say this because over the last couple of months, I have been experiencing strange hallucinations at night. I wake up several times during the night thinking that someone is walking in the hall, talking in the closet, or moving around in the bathroom. I also have seen shadows in the corners when I look around. I attribute this to my meds becoming ineffective. I asked before if dreams can be hallucinations because my dreams have become very frighting and confusing as well. I have dreams where I seem to be having a nightmare, then it seems that I wake-up and experience a hallucination. Then, I DO wake-up, but it seems as if the dream is continuing, and the hallucinations from the dream continue. I think that I "hear" and "see" what was happening in the dream, but I am not sure if I am still dreaming. I am having a very hard time telling reality from my dreams. A couple of nights ago, I have a dream where I was dreaming, then woke up and started hallucinating, I woke up and the monster from my dream was standing in front of me talking to me, or so I thought. I screamed, and jumped, waking up my wife up. She tried to console me, but the monster was still there, and I was thrown into a full psychotic episode. We knew that I was awake, but the monsters were still there. I am scared and confused as to what is happening. I am having more and more difficulty telling my dreams from reality, and my sleep is becoming increasingly compromised.

Those are called hypnagogic hallucinations.
Hypnagogic hallucination

I don't know what the significance is when it's also happening in a psychotic disorder but it's not a symptom of a psychotic disorder, only a sleep disorder.
Do your meds cause sleeping problems? Maybe talk to your doc about getting them fixed or maybe have a sleeping aid added? Maybe your current meds are just making your dreams too vivid. When my dreams are too vivid it upsets me as well and it's difficult to shake them out of reality.

When you wake up and think you are awake but then later you really wake up is called a false awakening. I've had those a lot. They are not pleasant.
I've also had hypnagogic hallucinations. I've even woken up with sleep paralysis and had shadow people chanting over me and I even had a disturbing conversation with an Alien once. I've seen floating blobs, random people hovering over me and other disturbing images but the good thing is, they are just dreams and not part of psychosis.
The part of not telling dreams from reality though is scary and I'm not sure what to tell you.
I think you would benefit from learning dream control. It's what I did to control my dreams. I practice lucid dreaming and it's helped with my nightmares so much it's unbelievable.

hypnagogic hallucinations occur when ur about to go into sleep and hypnapompic hallucinations is when u come out of sleep...well this is what my psychiatrist tells me anyways...

thanks Ash. i didn't know there was another term

I have had these hallucinations before my "daytime hallucinations" began... My parents also have hypnagogic hallucinations, but none during the day. I think there is a difference between the two...