BackgroundMany people with dementia live in residential homes, but little is known about their quality of life.AimsTo compare the views of residents with dementia with the views of staff as to their quality of life, and to look at factors associated with these ratings.MethodThe Quality of Life in Alzheimer's Disease (QoL-AD) scale was used to rate residents' and staff's perceptions of the quality of life of 238 residents of 24 residential homes in the UK.ResultsThere were 119 QoL-AD scales completed by both residents and staff. For the residents, high QoL-AD scores strongly correlated with lower scores for depression (ρ=–0.53, P < 0.0001) and anxiety (ρ= –0.50, P < 0.001). In contrast, better quality of life as rated by staff correlated most strongly with increased dependency (ρ=–0.53, P < 0.001) and behaviour problems (ρ=–0.40, P < 0.001).ConclusionsThe QoL-AD could be used as an effective measure of the quality of life of people with dementia in residential homes. Whereas mood was the main predictor of residents' own assessment of their quality of life, staff ratings were strongly linked with dependency. Staff should be aware that mood rather than level of dependency has agreater impacton residents' quality of life.