Anyone help me figure out an obscure memory of a movie?

[EVILNess]

Okay, there was a movie I saw a loooong time ago and I cannot remember the name of it. I was maybe 4 at the time, so late 80s? I do remember bits and pieces of it though. What I am asking is if anyone can help me piece the bits together to get a name I might throw into netflix and watch again.

I remember a house and someone the protagonist got transported to a sand filled place? I seem to recall a cowboy, and the hero picked up a friendly monster, which was a puppet, and I remember it might be an unrelated sequel to another movie.

Kinda vague I know, but I can't remember what it is for the life of me.