Purpose: This study was conducted to investigate correlations between environmental characteristics and disturbing behaviors in elderly people with dementia living in institutions. Method: A random sample of 107 subjects in three institutions for people with dementia in the Gyeongnam Province was tested between May 29 and June 5, 2002. Data was collected through a questionnaire and analyzed using SPSS/PC Win 10.0 Result: The major findings of the study are as follows. 1) the mean score on physical environment was $3.55{pm}0.47$, and on psychosocial environment, $3.55{pm}3.08$. 2) the mean score on disturbing behaviors showed that nonaggressive psychomotor behavior was the highest, and aggressive psychomotor behavior was the lowest. 3) the disturbing behaviors. in 5 the domains correlated with the environment and influencing factors included environment, family, level of dementia and level of ADL. Conclusion: Both the present physical environment and psychosocial environment influence the type of disturbing behavior in elderly people with dementia. Therefore, nursing can reduce the disturbing behaviors through maintenance of both the psychosocial environment and the physical environment. Furthermore, nurses must consider disturbing behaviors of elderly people with dementia by being aware of the level of dementia and ADL.