Purpose: This purpose of this study was to examine the effects of self-efficacy and activities of daily living on the level of depression among elderly nursing home residents. Methods: A descriptive study was conducted using a self-reported questionnaires completed by 163 elderly. Data were analyzed using t-test, one-way ANOVA, Scheffė test, Pearson correlation coefficients, and multiple regression analysis using SPSS 20.0. Results: The mean score for depression was 9.24, for self-efficacy 3.19, and for activities of daily living 1.85. Stepwise multiple regression analyses were used to examine the influences of research variables. Activities of daily living and self-efficacy were significant predictors of depression. The model explained 24.0% of the variables. Conclusion: As a result of this study, the activities of daily living and self-efficacy were defined as an important influential on depression. Therefore, the development nursing intervention programs is needed to reduce depression levels in the elderly to enhance daily living activities and self-efficacy.