Five groups of participants (young, healthy old, healthy old-old, very mild Dementia of the Alzheimer's Type, Mild Dementia of the Alzheimer's Type) studied and were tested on six 12-item lists of words selected from the DRM (Deese, 1959; Roediger & McDermott, 1995) materials. These lists of words strongly converged semantically on a nonpresented critical word. The results indicated that both veridical recall and recognition performance decreased both as a function of age of the participants and as a function of dementia severity. However, the recall and recognition of the highly related nonpresented items actually increased as a function of age, and only slightly decreased as a function of DAT. When false memory was considered as a proportion of veridical memory, there was a clear increase as a function of both age of the participants and as a function of disease severity. The results are discussed in terms of (a) age and DAT-related changes in attention and memory performance, and (b) the underlying mechanisms that produce false memories in the DRM paradigm.