The `Lord of War` actor awoke to the "nightmare" of finding the intruder in his home and wearing his own clothing but even though he had to get him out quick he didn`t press charges.
Speaking at a press conference for his new film `Trespass`, he said: "I have lived through the nightmare, I have been one of those people who has been through a home invasion
"I was living in Orange County in Los Angeles at the time, I was asleep with my wife, my two-year-old at the time [Kal-El] was in another room.
"And I opened my eyes and there was a naked man in my leather jacket eating a Fudgesicle [ice lolly] in front of my bed.
"It sounds funny. But it was horrifying. He ran into my bathroom, and I said, `What are you doing in my house? Get out of my house!`
"And I did talk him into getting out, and some people came and they put him into a facility. I didn`t press charges because I realised he wasn`t all there."
Even though Cage was fearful of his and his family`s safety he never at any point contemplated using violence to get rid of the intruder.
He added: "The cops said to me, if he had broken into any other house in this neighbourhood he`d have been shot. But I don`t have a gun in my house, and I`m always going to try and talk you out of violence if I can. But it was horrible for my wife, and I could never really stay in that house after that."