The cover of Sandman 4 (Aug/Sept 75) proclaims Jack Kirby's return to the pencils on the issue. Fleisher remains on the script, and Wally Wood begins on the inks.
Jed has a lot of really disturbing nightmares in this story, which backs up the idea that this kid's dreams are far worse than those of anyone else. An alien race is able to view his dreams, and decides to launch an invasion of Earth through them.
Since Sandman is unaware of this, and Brute and Glob have been well behaved, he sets them free to have a "vacation" in the Dream Stream. We see them at a banquet with a bunch of other residents of the Dream Stream, all of whom get sealed up in a dome by the aliens. The Nightmare Wizard, living off by himself, remains free, and works in conjunction with Sandman to try to stop the alliens.
Sandman sees the aliens moving through Jed's dreams and wakes the boy up in an attempt to stop them, although this does not work. Both Sandman and the Nightmare Wizard wind up captured by them.
So Sandman manages to lead a waking Jed into the Dream Stream, directing him to the cave where he and the Wizard are being held. Jed does not question the strange voice giving him orders, which is good. Once Sandman is free he uses his sonic whistle to shatter the dome holding Brute, Glob, and the other dream creatures, all of whom join forces to defeat the aliens. Sandman then uses the whistle to send Jed back to the real world, where he thinks everything he experienced was another dream.