Purpose: This study was conducted to examine the effects of exercise on physiological, physical and psychological functions of the frail elderly. Methods: The research design was a nonequivalent control group pretest-posttest design. Data were collected from September 9 to October 10, 2009. The subjects were 56 frail elders who agreed to participate in this study and each subject was randomly assigned to either the experimental group (n=28) or the control group (n=28). The exercise program was provided to each subject in the experimental group twice in a week for 6 weeks. Data were analyzed with frequency, ${chi}^2$-test, Kolmogorov-Smirnor test and independent t-test using SPSS/WIN 12.0. Results: There was a significant improvement in psychological functions in the experimental group compared to the control group (t=1.726, p=.045). Conclusion: The exercise program showed the effects to improve the psychological functions of the frail elderly with chronic disease. In recommendation, this exercise program could be utilized as a health promoting program for the frail elderly.