When people get up in the morning, becoming oriented after a deep sleep can take a bit of time. It would make sense that someone with dementia may wake up still “dreaming” and have a more difficult time re-orienting to the day world than an average person. Your mom might need time to determine what is real and her hallucinations may partly be from her dreaming the night before. Another cause could be low blood sugar and orange juice would help. A physician should give her a physical to rule out a medical cause. Help her with dressing, and orient her to the ‘real’ world when she gets up in the morning.