Zoloft (sertraline) is making me have nightmares and sleep disturbance, is this a common side effect?

It could: Zoloft (sertraline) is known for suppressing rem sleep which could change sleep patterns try moving it to the morning if you are taking it at night... Or vice versa.

Possibly. : Are you just starting with the medication? It may be part of a side effect profile but is not too common. The Zoloft (sertraline) does stimulate the CNS and be causing nightmares and sleep disruption. Consult with your prescribing physician.

SSRI and sleep: It isn't uncommon to see an increase in insomnia in the first few weeks of starting an SSRI but nightmares are not common. Recommend you see a Psychologist for evaluation of what all factors that may be relevant. Often I find that there are other things going on that the person didn't realize could be relevant.