A study produced by Alzheimer's Australia suggests up to 80 percent of dementia patients in aged-care facilities are being restrained with psychotropic drugs.
The report suggests only one in five dementia patients get any benefit from taking such medication.
Alzheimer's Australia said the use of drugs in nursing homes is excessive and it's calling for reform of the sector.
However, the industry argues it has been following the advice of medical professionals.
A Senate committee that has been hearing evidence about the overuse of psychotropic drugs is to release its recommendations on Thursday.