Anne Henderson, 84, disappeared from her home in Falkirk's Westfield Street yesterday evening.
She was reported missing after a relative went to check on her and found she was not at the property.
Police in the Forth Valley appealed for information to help find the pensioner, who has dementia, amid increasing concern for her safety.
They later confirmed that she was found by a resident in a garden in nearby Woodburn Gardens at around 8.25am today.
Ms Henderson was taken to Forth Valley Hospital in Larbert for observation, where she is said to be in a stable condition.
Inspector Graham Capes said: "Given Anne's age and the time of night she was last seen, we were very concerned for her safety. But we are pleased to report that she has been found and has been reunited with her family.
"We thank the public in Falkirk for their help in tracing Anne."