Objective: Alzheimer's disease (AD) is a major concern due to the debilitating and progressive nature of this terminal disease. The purpose of this study is to use embedded auditory memory measures to distinguish dementia from depression and normal cognitive aging. Method: Archival data were collected from a neuropsychology clinic. A total of 167 individuals (65+ years old) were included into the study. Individuals were classified into the demented group by scoring <23 on the Mini Mental Status Exam-2 (MMSE-2) or the depressed group by scoring >9 on the Geriatric Depression Scale (GDS). Several embedded auditory measures were used from the California Verbal Learning Test-2 (CVLT-II) and the Logical Memory (LM) subtest of the Wechsler Memory Scale-IV (WMS-IV). Results: Analysis of variance (ANOVA) demonstrated that the dementia group was statistically different than the other groups via several embedded auditory measures (delay recall, “saving scores,” recognition, intrusions, serial position effect [SPE], & learning curve). Logistic regression demonstrated that delay recall (CVLT-II) was the single best predicting variable for differentiating dementia from the control group (78.6%); when including “saving scores” and intrusions of the CVLT-II, and the SPE of the LM, the overall model had a correct classification rate of 88.4%. Furthermore, focusing on delay recall and SPE were the best variables for distinguishing dementia from depression (80.5%). Conclusion: While the delay recall was the single best predicting variable for detecting dementia, incorporating other embedded measures, such as “saving scores,” intrusions, and the SPE, helped increase sensitivity/specificity.