The increasing prevalence of psychogeriatric disorders among nursing home (NH) residents poses a challenge to both specialists and non-specialists. Dementia is the most common disorder among NH residents. However, studies show a lack of diagnostic and therapeutic precision in dementia among this population. Our own data show that 40% of 200 NH residents were not accurately diagnosed with dementia according to ICD-10 criteria. A substantial number of healthy subjects were pre-diagnosed with a cognitive disorder without fulfilling the criteria for dementia or mild cognitive impairment. Obligatory psychogeriatrical education is warranted for GPs as well as for specialists to improve medical treatment of dementia in NH residents.