Purpose: This study was to identify the relation between productive activity and physical and psychological ability in elders. Methods: A total of 294 subjects aged between 60 and 92 were selected through convenient sampling. Data were collected with a self-reported questionnaire from May to June, 2008. Collected data were analyzed by SPSS/PC Win. 15.0. Results: Of variance in productive activity, 13.3% was explained by house ownership, number of diseases, and successful aging. Of variance in physical and psychological ability, 25.4% was explained by house ownership, perceived health, number of diseases, and successful aging. The correlation coefficient between productive activity and physical and psychological ability was significant (r=.32, p<.001) Conclusion: Findings of this study may be useful in understanding the health status of community-dwelling elders and developing more specific health promotion programs.