People living with dementia are still experiencing disheartening levels of discrimination, especially from community members in public spaces.
Two-thirds of those living with dementia identified "people in the community" as the most common source of discrimination.
Dementia Australia chief executive officer Tanya Buchanan said the findings from the national survey highlighted the need for improved awareness.
"It is incredibly disappointing that Australians' understanding of dementia has not shifted in a decade and profoundly concerning that more people now think dementia is a normal part of ageing than they did a decade ago," Professor Buchanan said.
"Dementia is not a normal part of ageing," she said.
Moving towards dementia-friendly communities was a key recommendation, with the report flagging dementia-inclusive choirs and police training as opportunities to combat social isolation.
Stigma and discrimination can have serious health effects, leading people to put off doctor appointments for fear of a diagnosis or prompt withdrawal from friends and family reflexively.
Dementia Australia Advisory committee chair Bobby Redman, who lives with dementia, said people would feel less socially isolated if friends and others in the community "kept an eye out for us".
"All we are asking for is to be understood, respected and supported – just basic human rights," Ms Redman said.
The nationally representative survey of 2,000 people found 71 per cent of those with a family member or friend with dementia felt that others patronised their loved ones.
Nearly half the respondents felt that people were not keeping in contact with people with dementia as regularly as before the diagnosis.
The report was launched to coincide with Dementia Action Week starting on Monday.
