Deficit of awareness refers to an inability to realistically evaluate one's abilities and limitations, and individuals in the later stages of dementia may become completely unaware of surroundings and require continuous care. People with dementia may not be aware of the changes caused by their disease. Caring for dementia patients requires accurate assessment and monitoring of daily behavior as patients may be unaware, indifferent, or suspicious of being labeled. Previous research suggests that individuals with deficits of awareness can lead to obstacles in daily functioning. An important gap in the current literature remains regarding the psychological consequences of awareness of memory deficits. The purpose of this study was to investigate the psychological consequences of awareness of memory deficits by comparing the differences in cognitive functioning and depression between two groups of veterans, ages 55-89, with dementia. One group self-reported as aware of memory deficits and one as unaware. A quantitative design, using archival data, compared two groups of veterans with dementia who attended the neuropsychology clinic at the Department of Veterans Affairs in Danville, Illinois-- 75 veterans who were aware of their memory deficits and 75 veterans who were not aware. Cognitive functioning was measured by the Dementia Rating Scale - 2 and geriatric depression was measured by the Geriatric Depression Scale. Analyses used t tests and analysis of variance. The results showed the aware group reported more symptoms of geriatric depression; however, there were no differences between groups on cognitive functioning. This finding helps clarify the importance of addressing the emotional needs of veterans diagnosed with dementia. Positive social change implications are for caregivers and treatment providers to accommodate or restrict patients appropriately in order to ensure their safety based on patient deficit awareness.