As the population in Taiwan continues aging, the number of patients with dementia is rising, and holistic health care becomes more and more important. Traditional Chinese medicine (TCM) has been an integral part of Taiwan’s medical system and well recognized for its advantages of safety, low side effect, high cost-effectiveness, and gentle treatment process. According to related statistics, 43.3% of patients with dementia in Taiwan have been treated with TCM therapies. The article introduces the goals of TCM therapy for dementia treatment and proposes appropriate treatment strategies for different stages of dementia. The goals are respectively maintaining patients’ cognitive function for mild cognitive impairment and mild dementia, mitigating the behavioral and psychological symptoms of dementia for moderate dementia, and prolonging patients’ life function and avoiding intubation for severe dementia. Meanwhile, TCM therapy can also provide assistance to caregivers to reduce their physical and mental stress. It is hoped that TCM clinics can join forces with long-term care institutions and primary care physicians trained in Western medicine to develop effective integrated care and orchestrate multiple resources to offer patients with dementia better medical treatment and care.