Purpose: This study was done to investigate factors associated with depression and quality of life (QoL) among the community-dwelling elderly. Methods: This study used a descriptive correlational research design. The subjects were 730 elders aged over 65 living in D district of Daegu. Data were collected using questionnaires for 30 days in April, 2007. The research instruments utilized in this study were a physical function scale of long-term care insurance system, Geriatric Depression Scale Short Form Korea Version (GDSSF-K), and Korean Quality of Life Scale (KoQoLs). The collected data were analyzed by descriptive statistics, t-test, ANOVA, Duncan, stepwise multiple regression, and Spearman correlation. Results: The mean age of the subjects was 72.6, and 68.8% and 57.9% of subjects were, respectively, female and living alone. 12.3% of variance in depression was explained by age, education, economic status, subjective health, alcohol consumption, condition of teeth, and fall experience. 18.2% of variance in QoL was explained by economic status, number of diseases, condition of teeth, incontinence, paralysis, and IADL. Economic status and condition of teeth were contributing factors to depression and QoL of the elderly. Conclusion: Findings of this study may be useful in understanding the health status of the community-dwelling elderly and developing more regionally specific health promotion strategies.