Previous studies of Alzheimer's disease (AD) have correlated the severity of dementia with either the number of senile plaques or neurofibrillary tangles. We used antibodies raised against amyloid β/A4 protein of senile plaque cores and tau protein as well as thioflavine S and the Campbell‐Switzer modification of the Hicks silver method to examine the hippocampal formation and five neocortical regions from 22 nondemented elderly control subjects and 34 demented patients with cerebral senile plaques and neurofibrillary tangles, without complicating disease processes. Ten control subjects (46%) had no β/A4 protein deposition. Twelve control subjects (54%) had widespread β/A4 protein deposition but no neocortical neuritic pathology. Of the 34 patients with AD‐type changes, 27 (79%) had widespread senile plaques and neurofibrillary tangles, while 7 (21%) had neocortical senile plaques with few neurofibrillary tangles. All demented patients had widespread β/A4 protein deposition and neocortical tau‐immunoreactive, Hicks silver‐positive dystrophic neurites. The neurites were found both free in the neuropil as well as surrounding senile plaques. Quantitative analysis showed that dystrophic neurites were significantly increased in patients with AD compared with control subjects and the number of dystrophic neurites and neurofibrillary tangles correlated with the clinical severity of dementia. Widespread cerebral β/A4 protein deposition may be necessary but by itself is insufficient for the development of dementia in AD.