The number of people with dementia is rising every year, and it is getting more expensive to provide care for them in specially designed care centres. Furthermore, some people with dementia prefer to live independently, and to be accompanied by informal and family caregivers. One way to meet this requirement of people with dementia is to place them in smart homes. Smart homes facilitate extra care for people with dementia with automated and semi-automated support. However, smart homes need to be designed in a way that addresses the specific needs of people with dementia. One suggested approach is the usercentred design method, which involves the participation of people with dementia and their caregivers during the design process. This paper presents a literature review of smart homes for people with dementia and user-centred design. The paper attempts to provide a sound review, which can be useful for designers and developers of smart homes for people with dementia.