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Above, talkey mentioned to have her check for UTI. My mom also has delusions and hallucinations and after checking for a UTI, she is positive. With antibiotics those hallucinations pass. Though the past two times she's hallucinated/delusional, she tested negative for UTI and the doc believes it's her disease progression.
There are two women who talk to invisible companions at mom's nursing home, one of them actually seems to "hear" replies and answers (it sounds a lot like listening to someone on the phone), the other just drones a constant monologue, telling and re telling her stories. It's sad.
She is not telling lies. That is, she is not deliberately saying things that she knows are not true. She is telling the truth of her own reality, which is very definitely not your reality.
If you are going to continue taking care of someone who has dementia you would probably be A LOT more comfortable if you learn about the disease.