Lyndale Manor in Masterton now has eight more rooms for people with dementia.
Owners Robin and Elizabeth Dunlop have refurbished and expanded the specialist dementia facility from 12 beds to 20, because of demand.
It cost $400,000 to carry out the project on the Daniell Wing, said Mr Dunlop.
He said the rooms had to be designed quite differently to a normal resthome room.
Manager Viv Richardson said there was a real need in the community for the facility.