The purpose of this study was to identify the effects of aroma hand massage and hand massage on sleep disturbance and depression in hospitalized elderly patients. The study was performed using a nonequivalent control group pretest-posttest design. The data was collected by using questionnaires and the measured values from 1 June to 31 August, 2006. The subjects who were admitted to the B Medical Center Hospital in Busan. A total of 40 subjects were selected : 20 in the experimental group and 20 in the control group. The aroma hand massage was administered to the experimental group, and hand massage was given to the control group. The experimental group were applied the aroma hand massage executed by methods such as effleurage, circling, pressing, etc. to both hands using a solution diluting six drops of lavender oil, and bergamot oil, 3% in jojoba oil 20 cc. In the experimental group, aroma hand massage was given for 10 minutes, three times a week, during 2 weeks. The control group receiving the hand massage was given the massage for 10 minutes every two days for 2 weeks. The result of the study are as follows : 1) The first hypothesis : "The Experimental group would have a higher degree of sleep score than the control group" was supported(F=31.798, p=p<0.001). 2) The second hypothesis : "The Experimental group would have a lower degree of depression score than the control group" was supported(F=21.743, p<0.001). Aroma hand massage is an effective nursing intervention for decreased sleep disturbance and depression. Therefore, aroma hand massage by nursing intervention is strongly recommended for improving psychological and physiological functions in hospitalized elderly patients.