This study explored the implementation of person-centered care among dementia caregivers working in the Dementia Units of five Retirement Villages in Auckland, New Zealand, with the goal of developing a Nurse-Led Capacity-Building Program tailored to their specific caregiving contexts. Grounded in Kitwood’s Personhood Theory, Brooker’s VIPS framework, and the MyRyman Life Model of Care, the study employed an explanatory sequential mixed-method design to assess the extent of PCC delivery through quantitative measures and explore caregivers’ perspectives through qualitative interviews. Using the Person-Centered Care Assessment Tool the study identified high overall awareness of PCC principles among caregivers but also revealed challenges related to workload management, limited organizational support, and constrained environmental accessibility. Demographic variations—such as age, years of experience, and ethnicity—were analyzed using Mann-Whitney U and Kruskal-Wallis tests, offering nuanced insights into caregiving patterns. Thematic analysis unpacked barriers to PCC delivery, revealing a structural-operational disconnect that affects daily care practices. Findings lead to development of Nurse-Led Capacity-Building Program integrating leadership training, upskilling workshops, mentoring partnerships, and policy advocacy. The aims is not only to enhance caregiver competencies but also to strengthen the organizational culture that supports person-centered dementia care. The study acknowledges the absence of cultural adaptation for a multi-ethnic workforce and did not stratify findings by dementia type or caregiver licensure status. This research contributes to the growing body of literature on sustainable dementia care models, bridging theoretical ideals with practice-based realities. It advocates for institutional investments in training, policy alignment, and culturally responsive care strategies to ensure that person-centered principles are effectively translated into practice.