Purpose : The purpose of this study was to describe experiences of chronically ill elderly and their families, their perception on current nursing homes, and identify the attributes of nursing homes they consider ideal; Korea is experiencing rapid aging of population but there is absolute lack of nursing homes for elderly. However, increase in number of elderly with chronic illness and/or impediment in activities of daily life and changes in family structure such as small size family, increase in female labor market participation make caring elderly parents at home more difficult. Method : This study employs the case study methods. Data were collected through in-depth interviews using open Questions and were analyzed by using content analysis method. The subjects were 28 : 13 elderly patients over 65 years old with chronic diseases and 15 family members of elderly patients at 2 general hospitals and 1 oriental medicine hospital in Seoul. The data were collected from 15th of July to 30th of Sept. in 2001. Result : The elderly patients and the families reported that they experienced \'feeling of burden\', \'shortage of supports in family\', \'discontent on nation\'s welfare policy for the elderly\', \'discontent of hospital care\', and \'sorrow\'. The elderly patients prefer to live independently because they do not burden the children. The married elders wanted to be admitted to nursing homes together. However, the decision to admit the elders to nursing homes were made by sons of the elders. One of the important barriers to the utilization of the nursing homes is negative images of facilities which may be due to traditional filial duty and negative publicity. The families expressed the need of nursing homes for the elderly, however their hesitance and guilty feelings to admit their parents to nursing homes. They are not satisfied with the present nursing homes for the elderly in Korea. The attributes of the ideal facilities the elderly patients and the families identified include following areas: \'affordability\' is most frequent, and followed by \'close to children\'s home\', \'humanistic care\', \'professional staff\', \'safe and home-like environment\', \'better image\', \'connection to the community\', and \'effective communication\'. Conclusion : In conclusion, majority of the elderly patient\'s and the families in this study recognized the need of the facilities to care for the elderly and have intention to use them. It is important to develop nursing homes for the elderly which can be affordable but it is also necessary to improve the negative image of the facilities.