Cryptic crossword clue
Source of nightmares has fellow clutching top of leg in terror 9

The most common and most likely answer to this crossword clue is the 9 letter word DREAMLAND

I've seen this crossword clue in Independent
D
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Buddy explains!

The straight part
We know that "Source of nightmares" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case source of nightmares = dreamland.
The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.
This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.

What does DREAMLAND mean?

DREAMLAND noun
  1. An imaginary world experienced while dreaming.
  2. An imagined world that is ideal yet unrealistic; a fantasy.

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