Purpose: The purpose of this study was to investigate family caregivers' feelings of guilt and depression and identify factors predicting depression after nursing home placement of older adult family members. Methods: Data were collected using questionnaires completed by 112 family caregivers of older adults in nursing homes in Seoul and Gyonggi Province. Feelings of guilt in family caregivers were measure using the Caregiver Guilt Questionnaire (CGQ) and depression, using the Center for Epidemiological Studies-Depression scale (CES-D). Data were analyzed using t-test, ANOVA, Pearson’s correlation, and multiple regression analysis. Results: Average score for depression was 22.3 indicating depression status in family members. Factors predicting depression were feelings of guilt (β=.39, p<.001) and older adults' participation in the decision-making process for nursing home admission (β=.28, p=.001), which together accounted for 28.7% of the variance in depression. Conclusion: Findings show that families of elders in nursing homes experience depression, which can be reduced by a family intervention program designed to decrease feelings of guilt and provide guidance on older adults' participation in decision-making. The nursing home placement process should include help in understanding the importance of the role of family in promoting positive relationships between the elder and their family.