The purpose of this study was to understand the effects of group art therapy using the medium of paper on cognitive function and fine motor skill of the demented elderly. A total of 16, composed of 8 in the experimental group and 8 in the control group, were selected from the elderly with mild dementia. Participants used Seoul K-Gu Day Care Center and scored below 19 points in the MMSE-K and were randomly assigned to carry out this study. The experimental group participated in a weekly, 60-minute session every Thursday for a total of 15 programs, excluding pretest and posttest, from Oct. 2017 to Feb. 2018. The Korean-Mini Mental Status Examination (MMSE-K), Human Figure Drawing tests and KISE development scale was used to measure cognitive function and fine motor skills. Specifically, the Human Figure Drawing tests were used to determine qualitative analysis using recording, observation, and content analysis. The Wilcoxon Signed Rank test was performed for statistical analysis. The results demonstrates that the experimental group showed a significant difference in four categories as well as in the overall result. Also, the experimental group partially showed a significant difference in three categories of fine motor skills, including accuracy, cognitive movement, and writing skills, and there was a significant difference in the overall result. In the program, qualitative analysis of each session suggested that cognitive stimulation training, which sustained therapeutic intervention by repetitive use of paper medium and continuous stimulation of hand sensation, positively improved the cognitive function and fine motor skill of the demented elderly.