Mayor Councillor Ken Dixon cut the red ribbon for the facility at Mandale House Care Home, Acklam Road, Thornaby.
The suite is outfitted with tactile furnishings such as wall art and cushions, light exercise equipment, gardening tools, cleaning items, music and games.
The items provide a therapeutic effect for those living with dementia, says Sarah Robinson, activity coordinator at Mandale House Care Home.
She said: “The sensory suite is a calming area for our residents with dementia to enjoy.
“Items that spark memories through sensory stimulation are hugely effective and have proven benefits for those living with dementia.
“We’d like to thank Mayor Councillor Dixon for officially opening our first class sensory suite with a ribbon cutting ceremony.”