Alzheimer's Disease (AD) in elderly adds substantially to socio-economic burden necessitating early diagnosis. While recent studies in rodent models of AD have suggested diagnostic and therapeutic value for gamma rhythms in brain, the same has not been rigorously tested in humans. We recruited a large population (N=247; 106 females) of elderly (>49 years) individuals from the community, who viewed large gratings that induced strong gamma oscillations in their electroencephalogram (EEG). These individuals were classified as healthy (N=227), mild-cognitively-impaired (MCI; 14) or AD (6) based on clinical history and Clinical Dementia Rating scores. Surprisingly, stimulus-induced gamma rhythms, but not alpha or steady-state-visually-evoked-responses, were significantly lower in both MCI and AD patients compared to their age and gender matched controls. This reduction was not due to differences in eye movements or baseline power. Our results suggest that gamma could be used as potential diagnostic tool for MCI/AD in humans.