Tall Man is a nigh-omnipotent entity with a vast array of powers that range from telepathy to necromancy, oneirokinesis and reality-warping. Freddy Krueger, on the other hand, only has powers that are exclusive to the dream world. While his sharp clawed glove can inflict damage, it wouldn't be enough to surpass Tall Man's Nigh-Invincibility and Regeneration abilities. Tall Man's Genius-level Intellect will help him anticipate and counter Freddy's moves, while his possession and soul manipulation abilities will also come in handy. Freddy Krueger's powers are formidable, but they are limited to the dream world and can easily be overcome by Tall Man's reality-warping and dimensional manipulation abilities. Therefore, Tall Man wins.