The sandman is the master of dreams.
The sandman mentions he has spent centuries searching all conners of the dream world for his sand, it is implied that he once had it, but he either lost it or someone took it off him, and he spent all that time looking for it.
He arrived in pleasantville, and started forcing people to look for it, including Tommy, Melton and Lori, eventually TNT found it.
Now possesing it, he used it on them, and then Lori, and would have used it on Melton if Tommy hadn't saved him. After which he used his slaves to dig up the rest of it, and start building his sand blaster, which would blast the sand all over the world, making everyone his slave.
Upon discovering this Tommy and Melton tried to escape, but spoting them, he tried to hit them with the sand, however they were able to wake up just in time, and made the discovery, what ever your holding in the dream world, you bring with you into the real world.
It was almost completed, when he met Tommy again, he forced first TnT to attack him, then Lori, before Tommy was able to grab him, and pull him into the real world, weakened Tommy through him against the wall, causing him to disintergrate into sand.
Following his defeat, his spell was broken and everyone woke up from the sleep, and everything returned to normal, while Melton placed his remains in a large sand timer.
Powers and AbilitiesEdit
The sandman was an incredibly powerful entity, while in the dream world he was invincible, as shown when Tommy tried to punch him, his fist just harmlessly passed through him, he could take any form in the dream world, teleport and even force other to do things against there will.
With his sand, the sandman was able to make any one, who was hit by the sand, sleep forever, and became his mindless slave, they retained some of there personallity though. Once defeated the sands spell was broken.
He was also able to bridge the worlds, so anything that a person had in the dream world became real when they woke up.
He was however much weaker in the real world.