Abstract Introduction Of the estimated 5.8 million people in the United States diagnosed with dementia, approximately one-third experience a chronic sleep disorder. Poor sleep quality in older adults is associated with higher levels of depression, anxiety, agitation, and falls as well as lower levels of cognitive and memory performance. Light is the most important environmental element that is not only necessary to fulfill visual tasks but also is the main stimulus that regulates circadian rhythms. This study aims to investigate the effect of a dynamic lighting intervention on sleep quality and mood in older adults with dementia living in long-term care facilities. Methods The study is conducted as a within-subject study design over 7 days of conventional lighting (Baseline) followed by 21 days of room lighting (Placebo) and then 21 days of dynamic lighting (Treatment). The dynamic lighting intervention is designed to create an ambient illumination that provides a high level of circadian stimulation in the morning and circadian-neutral lighting in the evenings through delivering varying light intensity and spectrum. The placebo condition exposes participants to a static lighting condition that is equivalent to the average room lighting from morning to evening. The human-lighting interaction occurs in the common areas of the selected memory care facility in Phoenix Greater Area, AZ. Participants of this study are individuals over the age of 65 diagnosed with mild to moderate dementia. Actigraphy is conducted on the last 7 days of each condition to monitor sleep quality. Daily light exposure is tracked continuously throughout the waking day using a non-intrusive wearable sensor. Moreover, caregivers complete two questionnaires (Cornell Scale for Depression in Dementia (CSDD) and Cohen-Mansfield Agitation Inventory (CMAI)) every seven days to assess the short and long-term effects of each condition on mood and agitation. Results Findings show notable improvements in mood and nighttime sleep duration and efficiency in participants after exposure to the dynamic condition compared to the baseline and placebo. Conclusion The outcomes of this study provide strong evidence that ambient lighting in memory care facilities is a significant contributor to improving sleep and quality of life of older adults with dementia. Support (if any) None