Nurses who work with older adults with dementia in the community are aware of how difficult it can be for family members to make placement-related decisions, and need research-based information to help families make these decisions. This article presents the results of a qualitative research study intended to explore the factors influencing caregivers' decision-making process related to placing an elderly family member with dementia in a nursing home. Using the study findings, the author suggests a theory which helps to explain some of the decision-making factors which appear to influence caregivers' abilities to make placement-related decisions. The nursing implications of this theory, and recommendations for future research, are presented.