Purpose: The aim of our study is to compare the physical performance and quality of life of older adults living in the community and nursing homes. Material and methods: 120 subjects, older than 70 years of age were included in the study. Elder individuals were separated into four different groups according to their living environments. Subjects living in a nursing home consisted the first group, subjects living alone consisted the second group, subjects living with their spouses consisted the third group and subjects living with their children consisted the fourth group. Physical performance and quality of life of the subjects were assessed. To assess quality of life, Sickness Impact Profile and 12 Item Health Status Questionnaire were used and to assess physical performance Physical Performance Test was used. Results: No difference was found between the test results in intergroup comparisons (p> 0.05) When the effect of educational level of the subjects on test and questionnaire scores was investigated, the only difference found which was in favor of the subjects having higher levels of education was related to Physical Performance Test scores. When the results of the test and questionnaires were compared between genders, we found a statistically meaningful difference in favor of the male subjects (p< 0.05). Conclusion: The results of this study showed that quality of life and physical performance was not affected by place of residence.