Purpose: This study was designed to examine how Behavioral and Psychological Symptoms of Dementia (BPSD) in elders with dementia were related to Activities of Daily Living (ADLs) and Instrumental Activities of Daily Living (IADLs) for these elders living in a local community. Methods: This was a retrospective study including 16,596 elders with dementia registered in the Seoul Dementia Management Project Database during the period from June 2007 to May 2013 and who completed the Seoul Dementia Assessment Packet (SDAP). Data were analyzed using descriptive statistics, Pearson correlation, Spearman rank order correlation and hierarchical multiple regression analyses. Results: Prevalence of BPSD among the elders with dementia living at home was 76.3%. Findings from the hierarchical multiple regression analysis to identify how BPSD predicts ADLs and IADLs revealed that while BPSD in the elders was a factor that significantly predicts both ADLs (β=.22, p<.001) and IADLs (β=.25, p<.001), severity of dementia, age, education, vision and hearing ability were not. Conclusion: Considering that the results of this study show that BPSD in elders with dementia has predictive relationship with ADLs and IADLs, it is important to strengthen family education programs and develop a care manual to actively address BPSD in elders with dementia.