The purpose of this study was to investigate the relationship between the needs for environmental improvement and dementia patients' activity of daily living (ADL) and behavior and psychological symptoms of dementia (BPSD) in dementia patients living in urban type dementia care villages. The subjects of this study were 70 households with cognitive impairment and dementia among residents of dementia care village in Gunsan City. The survey was conducted with the permission of their family. Frequency analysis and descriptive statistical analysis were performed on the main variables to analyze the characteristics of the subjects. Bivariate correlation analysis was performed to verify the relationship between the two variables. According to the analysis results, the order of environment improvement was in the order of entrance (51.4%), toilet and stairs (48.6%), kitchen (11.4%), bedroom and laundry room (10.0%). In the relationship between the variables, The ADL was correlated with age (r=.315, p <.01), BPSD (r=.322, p<.01) and living environment inconvenience (r=.640, p<.01) while, living environment inconvenience correlated with environment improvement need (r=.669, p<.01). This study suggests that improvement of the residential environment of dwellers in dementia care villages, especially the stairway and entrance hall is necessary.