Type 2 diabetes mellitus (T2DM) is one of the most common chronic non-communicable diseases, and the rate of increase is higher than predicted. This is an age-associated disease that is more common among older patients, whose proportion is also increasing in both absolute and relative age groups. Despite advances in the treatment of T2DM and a wide range of hypoglycemic drugs, complications of this disease, primarily micro- and macrovascular, remain a public health problem. It is also known that T2DM is a risk factor for the development of dementia. Furthermore, there remains a significant prevalence of hypoglycemia among patients with T2DM who are undergoing hypoglycemic therapy. This poses a potential threat to older patients, increasing their risk for cardiovascular events and exacerbating cognitive impairments, because glucose is the primary energy substrate for the nervous system. Understanding the impact of hypoglycemia on the development of dementia in older patients and how these events interact, as discussed in this review, can further assist in developing prevention and risk minimization strategies.