If your hypnagogic hallucinations are caused by anxiety, your doctor may recommend psychiatric treatment. Treatment for anxiety could involve talk therapy, meditation, or medication, as well as other at-home care to reduce stress. If you’re diagnosed with narcolepsy, your sleep specialist will prescribe narcolepsy medications. (healthline)

Hallucinations may share greater underlying mechanisms with hypnagogic experiences (which more closely reflect REM intrusions into waking state than dreams) given that external stimuli continue to be processed and reacted to during NREM sleep, albeit intermittently. (National Center for Biotechnology Info.)

This is intuitively appealing and would fit with one of the most curious aspects of the hypnagogic experience: Our thoughts can stray towards tumbling horses, zips and violins but they also can seem completely unremarkable, and indeed, entirely reasonable, until we are jolted from our reverie. Only at this point do they seem odd or out-of-context. (The Atlantic)