We talk about monsters being scary and friendly. In fact the other morning at breakfast, she
When this talk of monsters first started, she used to say that we needed to watch out or hurry because a monster was coming! (She also has said this about sharks and dragons and other things which were going to "get us.") But she doesn't really sound worried about it. Just pretend worried.
When it started, I used to say, "That's a friendly monster/dragon! Let's invite him/her to have dinner with us/play with us." And she would. We have had monsters and dragons for dinner and tea parties--they are pretty good guests. She accepted them as easily as other pretend friends she "plays" with (we've had Dora, Boots and Benny to tea parties, and we often have Diego in the car ride to school). She seems to act the same way about scary monsters as she does friendly ones.
She has pretended to be a monster herself. My favorite is when she puts a blanket around her shoulders and/or head, holds her hands up like claws and says in a funny voice, "I'm a monster! Grrr!"
The Pumpkin has never really been scared of things. In fact, we had to work really hard to get her to realize that some things are dangerous (edges of things that are high up, for example). In one way, it's nice that she's not scared, even of monsters. In another way, I do worry about how she will develop later when she needs to be cautious of certain things.
For now, I'm just having fun playing monsters with her.