If someone is dignified, they stay calm and serious even when the situation is hard, unfair, or embarrassing, and that makes other people respect them. It is about manner, not about money or fancy clothes — a quiet person in a plain room can be dignified. We also call a ceremony dignified when it is calm and proper, not noisy or showy. It is a positive, slightly formal word. It is not the same as proud (proud can sound like showing off) and not the same as stiff (stiff can sound cold).