The purpose of study was to identify degree of ADL. physical health and understanding of nursing homes and the correlation between the three variables and to verify significant differences in understanding of nursing homes according to demographic variables in the hospitalized elderly patients. The participants were 141 elderly patients (60 years or over) who were hospitalized at K. hospital in G. city between November 15 and December 15, 2002. The Barthel Index (Mahomey & Barthel, 1995) for ADL, the Physical Health State of Korean Elderly (Choi & Jung, 1991), a questionnaire on Understanding of Nursing H developed by the researchers were used. The results are summarized as follows : 1. The mean score for ADL was 80.6 points out of 100, physical health, 48.1 points out of 60, and understanding of nursing homes, 18.9 points out of 20. 2. There were significant differences in under- standing of nursing homes according to level of education (F=3.23, p=.042) and level of monthly income (F=7.22,p=.001). Duncan test confirmed that the group with post elementary school education had higher scores than those with no formal education, and the group with income over 1 million won monthly had higher scores than those with income less than 1 million won. 3. ADL and physical health had a significant positive correlation (r= .596, p=.000). physical health and understanding of nursing homes had a weak positive relation (r=.213, p= .011). The correlation between ADL and understanding of nursing homes was not significant (r= .092, p= .276). In conclusion, the level of ADL was 80.6%, physical health, 80.2%, and understanding of nursing homes, 94.5% for the participants. Physical health, level of income and level of education were factors influencing understanding of nursing homes in these patients.