Purpose: The purpose of this study was to identify the factors that affect depression among elderly people with, and without, dementia. Method: The participants were 903 people who were 65 or older and resided in Sungnam City. Data were collected from April to July 2002 using a questionnaire. The collected data were analyzed using descriptive statistics and hierarchical multiple regression aided by SPSS/PC. Result: The variables at the final step of the regression equation accounted for 28.2% of variance in the dementia group, 21.4% in the group with suspicious dementia, and 18.9% in the normal group. The multiple regression analysis revealed that ADL and instrumental support were related significantly to depression in the dementia group. Self-rated health, IADL, social activity support, and instrumental support were significantly related to depression in the group with suspicious dementia. In the normal group, education, self-rated health, and living arrangement with family were significantly related to depression. Conclusion: Social support and health condition are important to decrease depression in elderly people with dementia.