Agitated behavior is common in persons with dementia, and one of the challenges faced by physicians and caregivers is the detailed and continuous monitoring of such persons. With the use of modern sensor and networking technology, and system directed observation, objective outcomes may be expected and with removal of the manpower requirement, evaluation can be continuous and need no longer be confined to clinical settings. In our work we are putting together an observational system composed of multiple sensors of different modalities to collect data from dementia patients in a hospital ward. Through this feasibility study we will gather data to help automate the detection of the onset of agitation in dementia patients. Eventually, with increasing success rates, the sensor based monitoring system and others based on similar concepts, will be effective tools in Smart Home environments for taking detailed observations of the elderly persons' physical activities and behavioral patterns.