Purpose: The purpose of this study was to identify the effect of Tai Chi exercise on loneliness, sleep pattern, and instrumental activities of daily living in elderly women. Methods: A quasi-experimental design, a nonequivalent control group pretest-posttest was used. Elderly women who agreed to participated in the study were assigned into an experimental group (n=20) or a control group (n=20). The experimental group participated in Tai Chi exercise program (Sun-style 12 forms) for 50 minutes per session, 2 times a week for 8 weeks. Tai Chi exercise program consisted of 10 minutes for warm-up, 35 minutes for main session, and 5 minutes for cooling down. Study outcomes were measured through study questionnaires. Data were analyzed using Chi-square test, t-test and Mann-Whitney test by SPSS WIN 14.0 program. Results: Compared with the control group, the experimental group showed significant improvement in loneliness (t=-2.733, p=.009), sleep pattern (t=2.552, p=.015), and instrumental activities of daily living (z=-2.171, p=.030). Conclusion: Tai Chi exercise program may be an effective nursing intervention for elderly women.