As populations continue to age, the prevalence of dementia is expected to increase. AD is by far the most common cause of dementia. The clinical course of dementia represents the challenges that this disease presents. There are no truly effective therapies for treating dementia, and the cost effectiveness of ChEIs has been challenged; however, there has been an explosion of information about AD. Evidence-based practice parameters for diagnosis and management of dementia have been developed. There has been an increased interest in the possible prodromal states of dementia, such as MCI. The concept of MCI has risen in prominence in recent years; it is speculated that initiation of therapies early in the course of disease may be needed for them to be effective. Considering the enormous burdens that AD places on individuals and society, disease-modifying treatments for AD are needed desperately. There are promising avenues for the development of potentially disease-modifying therapies for this devastating disease.