I'm also looking for this movie.
I also remember an elderly woman waving a cane in the air and morphing into an alien to fight other aliens.
I also remember her using either the microwave or the dishwasher as some sort of alien device to activate something, maybe to protect her house when the aliens arrive.
I don't particularly remember children with green eyes, but there were definitely children. I have the feeling that the children thought the old woman was strange and maybe were scared of her until they saw her transform to save the day.
The movie would have been from the late 80s or early 90s. Probably early 90s. I watched the French translation on TV in Canada. I remember the movie coming on a few years in a row. I think it was over the Christmas holidays.
Does anyone remember this movie?