Anxiety and sleep disorders are common and associated comorbidities of dementia. It is not known whether this association between anxiety and sleep disorders is more severe in people with mild dementia compared to a population of comparable age and gender permanently residing in care institutions, but without diagnosed dementia, hence, whether dementia itself contributes to the strength of this connection. For the above, the aim of this research was to examine whether there is a difference in the association between anxiety and sleep disorders in hospitalized patients with diagnosed mild dementia compared to people without diagnosed dementia but of comparable age, gender and length of stay in the institution. A cross-sectional study was conducted during 2022 at the Department for the Treatment of Chronic Psychiatric Patients Suffering from Dementia at the Sveti Ivan Psychiatry Clinic in Zagreb and at five public institutions - homes for the elderly in the City of Zagreb. Sleep disorders were measured using the Pittsburgh Sleep Quality Index (PSQI). was Anxiety was measured using the anxiety subscale of the Hospital Anxiety and Depression Scale (HADS-A). Confounding variables whose effect was controlled by multivariable statistical analysis were age in years, gender, and length of stay in the institution. 75 patients with mild dementia and 75 persons without dementia were included in the research. The two samples were reasonably comparable according to age and gender, but also different according to numerous other sociodemographic parameters. The research proved a statistically significant association between anxiety and sleep disorders in both examined groups, after adjustment for age, gender and length of stay in the institution.