I'm not sure if the giants were eating children, or just their dreams. I can't remember any more of the plot.
Some other random vague details I remembered:
- One older giant (somehow) ended up taking care of a girl, in his home
- The giant might have been vegetarian
- I think she was shown to easily fit on his hand (in terms of size-difference)
- Setting wise, the girl was in a "modern" home (1900+?), not in a fantasy or medieval setting
- The giant's home/world was more on the fantasy side
- Of course, there was an ugly evil giant
I can vaguely remember seeing this film in my childhood (1990s), and wondered what it was.