Objective : The purpose of this study was to compare the participation and influencing factors between rural and urban elderly and to identify their affecting factors.Methods : Data were collected from 77 rural and urban elderly. The instruments used in this study were Korean version of Mini-Mental State Examination (MMSE-K), Outpatient Physical Therapy Improvement in Movement Log (OPTIMAL), Korean form of Geriatric Depression Scale (KGDS), Rosenberg Self-Esteem Scale (RSES) and Utrecht Scale for Evaluation of Rehabilitation-Participation (USER-Participation). Data were analyzed using a chi-Square test, t-test, Pearson’s correlation and multiple regression.Results : All four functions had a statistically significant correlation with their participation. There were significant differences in factors relating to participation between the rural and urban elderly. A high level of negative correlation was found between participation and depression in rural elderly (r=-.486, p<.01), and a high level of positive correlation was found between participation and self-esteem in urban elderly (r=.598, p<.05). The main affecting factor was self-esteem in the urban elderly (p<.01).Conclusion : There were differences in the participation and influencing factors between rural and urban elderly, and the rural elderly were found to have more weaknesses than those from an urban area. An intervention program for participation should be designed differently between those from rural and urban areas.