This study explores a novel approach to advancing dementia care by integrating socially assistive robotics, reinforcement learning (RL), large language models (LLMs), and clinical domain expertise within a simulated environment. This integration addresses the critical challenge of limited experimental data in socially assistive robotics for dementia care, providing a dynamic simulation environment that realistically models interactions between persons living with dementia (PLWDs) and robotic caregivers. The proposed framework introduces a probabilistic model to represent the cognitive and emotional states of PLWDs, combined with an LLM-based behavior simulation to emulate their responses. We further develop and train an adaptive RL system enabling humanoid robots, such as Pepper, to deliver context-aware and personalized interactions and assistance based on PLWDs' cognitive and emotional states. The framework also generalizes to computer-based agents, highlighting its versatility. Results demonstrate that the RL system, enhanced by LLMs, effectively interprets and responds to the complex needs of PLWDs, providing tailored caregiving strategies. This research contributes to human-computer and human-robot interaction by offering a customizable AI-driven caregiving platform, advancing understanding of dementia-related challenges, and fostering collaborative innovation in assistive technologies. The proposed approach has the potential to enhance the independence and quality of life for PLWDs while alleviating caregiver burden, underscoring the transformative role of interaction-focused AI systems in dementia care.