All people need to satisfy their lives. This study was to investigate variables which affect satisfaction of life of the elderly aged 65 and over. A total of the 96 elders ere taken for research in an administrative district in Seoul, South Korea. Life Satisfaction Index(LSI), the Short Portable Mental Status Questionnaire(SPMSQ), Social Dysfunction Rating Scale(SDRS), the Geriatric Depression Scale(GDS) have been used to evaluate the satisfaction of life, mental abilities, social dysfunction, and depression of the elderly. Results of this study can be summarized as follows: First, participants achieved 8.50 in mental abilities, 16.76 points in depression, 63.52 in social dysfunction(15.56 in self, 14.91 in social relationship, and 33.05 in performance), and 13.32 in satisfaction of life. Second, there was no positive or negative relationship between satisfaction of life and mental abilities. However, satisfaction of life is negatively related to depression and social dysfunction subareas(self and interpersonal relationship). Finally, there were no significant effects of mental abilities and social dysfunction in interpersonal relationship on satisfaction of life. However, there were significant effects of depression and social dysfunction in social relationship on satisfaction of life of the elderly. It is obvious that social dysfunction in social relationship and depression are effective factors. Therefore, in services of the elderly, maximum support must be provided to treat depression and improve social function in interpersonal relationship. This study aimed at providing the basic information on the variables related to satisfaction of life of the elderly with non-handicapped and handicapped.