Is it typical for a 96-year-old with dementia to hallucinate and see people that are not there, even her mother?

It's completely normal for people with dementia to see people who aren't there. My Grandma swears that she just talked to her Mom, Grandparents, and now gone Grandfather. I believe it's their spirts, but it could be hallucinations. As long as it isn't bothering her, then I'd just leave her be.

my grandmother sees people all the time I think its angles she has deminta

If you search the site you will find lots of discussions on hallucinations. Is this something that bothers her, or does she take comfort from seeing her mother? Personally I wish my grandmother would come to visit my mom, perhaps it would offer her some peaceful reassurance about crossing to the other side.