OBJECTIVES: This study examined factors of relocating to nursing homes among community-dwelling older persons with dementia METHODS: This retrospective study used data from The Aging, Demographics, and Memory Study (ADAMS) to assess dementia severity and service use from 2002 to 2004 in the United States. This study examined psychotropic medication use among 279 older people diagnosed with dementia and used logistic regressions to identify factors associated with nursing home relocation among older persons with dementia. RESULTS: Among older persons with dementia (weighted sample =), 9.2 % of persons with dementia (weighted sample=16,272) took any antipsychotic medications; 69.7% were female and 68.8% were white. The average age was 85 years.  Their physical functions were measured by the number activities of daily living (avg. 2.92) and number of instrumental activity of daily living (avg. 3.6).  The most frequent diagnoses were Alzheimer’s disease (78.8%) and vascular dementia (23.2%).  I used the Neuropsychiatry Inventory (NPI) for behavior problems (delusions, hallucinations, agitation/aggression, depression, apathy, elation, anxiety, disinhibition, irritability/lability, and aberrant motor behavior).  I evaluated severity of dementia using the Clinical Dementia Rating Scale (CDR). I found that older persons with dementia are significantly more likely to relocate to the nursing home in 2 years if they were severely demented (OR=1.3, p<.05), or were on antipsychotic medications (OR =1.0 p<.05), or were getting older (OR=0.01, p<.05).  But, those who were living with caregiver (OR=-1.8, p<.01), or were Hispanic (OR= -1.4 p<.01) were significantly less likely to move to nursing homes.  Alzheimer patients were significantly more likely to relocate to nursing home compared to vascular dementia patients (OR= -1.4, p<.05).  CONCLUSIONS: Community-dwelling older persons with dementia are more likely to move to nursing home within 2 years if they had to be medicated for their behavior problems and were on antipsychotic medications and, the dementia is more advanced