Toward the end of her life, my grandmother had difficulty recognizing familiar people. One afternoon, her sister came for a visit, and they had a long conversation about the good old days. Later, Grandma commented, "That woman sure knew a lot about my sister!"
On another occasion, the whole extended family was at a party (someone's birthday, I think). Hubby and I were talking to Grandma. Suddenly, as she looked at him, her face lit up with recognition. "You're Bob!" she exclaimed.
"That's right," he agreed.
Then she turned to me with a smile. "And you're Bob's wife," she said.
Yep.