To see demons in your dream indicates that you may be experiencing or inflicting fear, emotional distress or physical abuse in your waking life. Demons are also symbolic of ignorance, negative habits, and of your shadow self. Perhaps you are being overindulgent and letting some negativity give way to your better judgment. Alternatively, the demons may represent a past secret that is still haunting you.
To dream that you are possessed by demons indicates ultimate helplessness.