Objective Cognitive stimulation therapy (CST) has been shown to have significant benefits in enhancing cognitive functioning and improving the quality of life of people with mild to moderate dementia. The present study examines the efficacy of the Italian version of the therapy (CST‐IT). Methods Older adults with mild to moderate dementia (n = 39) were randomly assigned to two programs: one group participated in the CST‐IT, consisting of 14 sessions (twice a week for 7 weeks) and the active control group took part in alternative general activities. The outcome measures were cognitive functioning (measured by the Mini‐Mental State Examination‐MMSE‐, the Alzheimer's Disease Assessment scale‐cognitive subscale, the backward digit span test, and a narrative language test); quality of life (Quality of life––Alzheimer's Disease scale); mood (Cornell scale for depression in dementia and the social and emotional loneliness scale); functional activities in daily living (Disability Assessment for Dementia); and behavior (neuropsychiatric inventory). Results After the intervention, only the CST‐IT group maintained its MMSE score, while the control group displayed deterioration. The CST‐IT group also performed better in some of the cognitive measures (Alzheimer's Disease Assessment Scale‐Cognitive subscale and narrative language), mood measures (Cornell scale, social and emotional loneliness scale with a decrease in reported loneliness), and the Quality of life––Alzheimer's Disease scale. No other treatment effect was observed. Conclusions The findings confirm the efficacy, at least in the short term, of the CST in sustaining cognitive functions and perceived quality of life in older adults with dementia in the Italian care setting as well.