Purpose: This research was designed as a pre-post experimental study with a nonequivalent control group to verify the effects of meridian exercise on health status, depression and self-esteem in institutionalized elderly people. Method: The research population included 38 participants, 65 years and over, who were assigned to an experimental group (18) or a control group (20). All of the participants were institutionalized in Seoul Data collection was done from October. 2000 to May, 2001 and the experimental treatment for this study, meridian exercise, was done for a total 30 minutes per session for 12 sessions over two weeks. The exercise was developed by a professor of Oriental Medicine and the researchers involved in this study. The data were analyzed using the SPSS PC+ program. Result: There were no significant differences for general characteristics between the two groups. Physical health status, mental-mood health status, depression and self-esteem were low. Differences in the physical health status of the elderly people was higher in the experimental group (t=16.299, p=.000). The effects of the meridian exercise on mental-mood health status, depression, and self-esteem were statistically significant (t= 10.301, p= .000 ; t=15.579, p=.000, t=14.571, p=.000). Conclusion: According to the results, meridian exercise should be used to improve health status, reduce depression and increase self-esteem, and so promote the quality of life for elderly People who must be institutionalized. A study to measure the physiological index in meridian exercise for elderly people is suggested as a method to set up a Korean nursing intervention to enable elderly people to manage their own health.