Objectives. Existential aspects of well-being are rarely studied in people with dementia, despite their reported importance. Self-report methods are also rarely used, despite the growing evidence for its use in mild-to-moderate dementia and the lack of concordance between self-reports and proxy reports of well-being. The goal of this study was to examine the relationship between one aspect of well-being, purpose in life, and one of its predictors, goal pursuit, while employing the self-report of individuals with dementia. Methods. Questionnaire and experimental methods were used to gauge the relationship between goal pursuit and purpose in life. The experimental portion was structured around creative drawing activities that are often used in adult day service centers. Results. People with mild-to-moderate dementia were able to provide reliable self-report data on their well-being. A strong association between goal pursuit and purpose in life emerged, but dementia severity did not moderate this relationship. Discussion. People with dementia who engage in goal-directed activity may experience a greater sense of purpose. Results from this study illuminate the experience of psychological well-being in dementia and may inform activity programming for this population.