This research was performed to compare life satisfaction of the elderly in institutions and homes. The scores of life satisfaction were collected from 74 elders in 5 institutions and 71 elders at their homes in Daegu and Gyungbuk province during October 1st to December 1st, 1999. The results were summarized as follows: 1. The elders in institutions revealed lower scores in life satisfaction than the elders at homes, but not statistically significant. 2. In institutions, the general characteristics which affected life satisfaction was health status and monthly income. For elderly at home, the general characteristics which affected life satisfaction scores were educational level and health status. According to the result of this research, the health-care and economic support must be considered as main factors in the nursing strategy for the elders. The results should be considered carefully when applied to the entire older population because it was conducted on a segment of the elderly population in Korea. And various social activities and nursing programs for the aged are required.