The development allows scientists the first ever opportunity to map the onset of the disease, similar to Alzheimer's, and track how drugs affect it.
They hope that the research, funded through the generosity of Telegraph readers, will allow them to develop treatments to halt the onset of the disease.
Known as dementia with Lewy bodies, the condition is the second most common form of dementia and is thought to affect more than 100,000 people in Britain.
As well as memory loss the disease causes other distressing symptoms including hallucinations and tremors. There is no known cure.
By creating the same damage to the brain in mice, the scientists, led by Professor John Mayer, at the University of Nottingham, hope to improve on the current treatments for the disease, which target only its symptoms and do nothing to tackle its causes.