One in five older adults with dementia is hospitalized each year. One in three hospitalized older adults will lose independence in transferring, eating, ambulating, dressing, or bathing, which increases nursing home admission risk; this risk is 36% greater in people living with dementia (PLWD). Rehabilitation could decrease this risk, but PLWD get excluded from rehabilitation because of dementia-related stigma. There are no high-quality studies to refute these beliefs, which perpetuates exclusion of PLWD from rehabilitation. To fill this critical knowledge gap, we will conduct the highest quality of study, where PLWD will be randomly assigned to receive rehabilitation services at an inpatient rehabilitation hospital or usual treatment in the hospital. We will test how rehabilitation services provided at an inpatient rehabilitation hospital can improve outcomes for PLWD and the healthcare system. Our results could guide healthcare providers on how to provide PLWD with rehabilitation services at an inpatient rehabilitation hospital.