My mother asked me where was the woman that was in our home today. There wasn't any woman in our home. Has anyone experienced this?

She might be remembering a dream. My mom has, since the beginning of her memory problems, trouble separating dreams from reality. AND she remembers her dreams and imaginings perfectly, while reality is just plain forgotten immediately.

My LO had a friend she called the Blue Lady. Apparently the Blue Lady had a son too, and she also had a car that flies. That’s when I thought uh oh this is some serious crazy talk. Eventually one day I was informed the Blue Lady died.
LO is in nursing home now, and she prolly needs to be in a memory care unit in near future. Her short term memory is getting really bad now. Recently she was talking about children she saw in the lobby, and asking where they went. Nurse told her there in school now. I’ve read ppl with dementia that speak of children is nothing to be alarmed about. Seeing children is comforting.

Have her checked for a UTI. They can cause hallucinations and bizarre behavior. You can do a home AZO test over the counter to give you an indication, but a doctor will have to test a sample to prescribe the right antibiotic.

Ambien can also cause similar delusions.

I agree, your Moms further along than early stages. Hallucinations are common. My Mom saw a little girl all the time. To the point she talked to her. Moms dreams, TV and reality were all one and the same. She had a hard time separating them. Mom could have dreamt the woman. Or, she did see her.

There is always odd and worrisome behavior that goes along with dementia. I'm not sure if your mother is in the 'beginning' stages of the disease, however, if she's seeing people in the home that do not exist! She may be further along than you realize. If she gets aggressive or has lots of hallucinations, anxiety, or other troubling behaviors, you'll need to get her to the doctor who can perhaps write her a prescription. Read up on the disease and the stages so you'll be prepared for new and odd behaviors as they appear:

https://www.dementiacarecentral.com/aboutdementia/facts/stages/

Good luck!