Age is an important determinant of mental health. Depression creates the greatest burden among the elderly when compared to other mental disorders. Depression decreases an individual’s quality of life and increases dependence on others. A descriptive study to assess the effect of activities of daily living on depression among elderly people in selected community settings, Coimbatore. Methods: The study was conducted in the Vagarayanpalayam area of the community in Coimbatore, The sample size consists of 50 elderly aged between 60-80 years. Non-probability convenience sampling technique was used. The level of depression, the functional ability was assessed by using a modified geriatric depression scale, modified Barthel ADL index. Results: It was found that there is a significant association between depression and activities of daily living among elderly people at p<0.005. It was found that the calculated ANOVA test value for the study group,10.08 for the age group,25.88 for the gender,14.63 for the income was significantly associated with depression and activities of daily living at p<0.005 and not significant with other demographic variables. It was found that the calculated ANOVA test value for the study group,8.29 for the age group,24.03 for the gender,13.58 for the income was significantly associated with depression and activities of daily living at p<0.005 and not significant with other demographic variables.