What does it mean to dream about a child being possessed by the devil?

This dream suggests that you have spent a lot of time and interest on Horror movies such as the Exorcist or one of the spin-of films. The idea of demon or devil possession is a mental mechanism to transfers guilt and responsibility for one's own behavior onto an imaginary uncontrollable evil being. Tales of child possession allow one to maintain belief in childhood innocence in spite of evidence to the contrary.