Purpose: The purpose of this study was to contribute data toward prevention from advancing dementia and also prevention of deterioration in cognitive impairment by constructing an optimal prediction model and verifying factors influencing cognitive impairment in elders with dementia who reside at home. Methods: The participants in this study were 351 elders who were registered at dementia day care centers in 11 regions of Metropolitan Incheon. Collected data were analyzed using SPSS Statistics 17.0 and SAS 9.1. Bootstrap method using the Clementine program 12.0 was applied to build an optimum prediction model. Results: Gender and education (general characteristics), alcohol, urinary/fecal incontinence, exercise, weight, and ADL (state of health), and depression (psychological state) were found to have an affect on cognitive impairment in these elders. Conclusion: Study results indicate nine key factors that affect cognitive impairment of elders with dementia who reside at home and that could be useful in prevention and management nursing plans. These factors could also be used to expand the role of nurses who are working in community day care centers, and can be applied in the development and provision of various programs to aid retention and improve cognitive function as well as preventing deterioration of cognition.