Formal:
* Bonne nuit et doux rêves. (This is the most literal translation.)
Informal:
* Bonne nuit et fais de beaux rêves. (This is a more common and friendly way to say it.)
* Dors bien! (This means "sleep well!" and is a common way to end a conversation before going to bed.)
* Fais de beaux rêves! (This means "have nice dreams!")
You can also use a combination of these phrases, for example:
* Bonne nuit, fais de beaux rêves!
Ultimately, the best way to say "goodnight and sweet dreams" in French will depend on your relationship with the person you are speaking to.