This article describes a partnership project between staff, residents and relatives at a nursing home for older people with dementia, and researchers at the University of Sheffield. The aim of the partnership is to develop care within the home and to create a positive environment for living, working and learning. The main principle guiding our work is the need to ensure that all participants: residents, relatives and staff, feel that they are valued members of the community. The project is using an action research approach and a range of methods, including: observation; interviews; questionnaires; process recording of meetings; and focus groups, to gather evidence about the research process and impact of the project. The article includes a summary of achievements to date and suggestions for future activity.