I remember this movie from the 90s that is about a bat like creature that has magical powers. I'm not quite sure if it can grant wishes. The movie has real people, it is not a cartoon. The creature is what I would call a puppet or animated character. It is creepy. Also, another detail I remember is that it probably wore a baseball outfit in a scene in the movie.

The creature in the movie kind of looks like the bat cartoon below. It has the same wide face, big eyes and pointy ears. If you could imagine Aero the Acro-bat as a real life puppet that's what it would look like.
http://image.com.com/gamespot/images...9063_front.jpg

I'm going insane, if you know what movie this is it would be amazing.

Could be:
Munchie
Or
Munchie Strikes Back
(he's wearing a baseball uniform in Strikes Back)

You are amazing! You found it.