I have been trying to find this movie for a long time now. I don't remember much at all, the only thing that sticks out is the ending. I know the monster was small and he has a small knife and wore like a jester hat or something. At the end the dog kills him by tossing the monster in the fan. The little monster would come out and scare the kid at night. Can anybody tell me the name of this movie? I need to see it to recapture my childhood... lol!

I think you're thinking of cat's eye. The monster lived in the wall and the cat would chase it away from the girl and the cat flung it into the fan in the end :)

The movie is Cat's Eye froma Steven King novel.