Depression is the single most widespread mental health problem facing the elderly, with pharmacotherapy the most frequent standard treatment modality for these patients. A psycho-therapeutic alternative to pharmacotherapy is Life Enhancement Counseling, a counseling approach matching therapeutic techniques to client characteristics and providing an age-appropriate and culturally sensitive treatment model for alleviating depression. Elderly subjects (N=100), mostly Hispanic Americans, completed two sets of measures of functioning pre- and post-therapy. Outcome analysis indicated that significant improvement in functioning occured along all dimensions of psychosocial functioning. Results showed that, among this Cuban-American sample, outcome was inde- pendent of client variables; two treatment variables, extent of Life Enhancement counseling and medication, were signifi- cantly predictive of treatment outcome. In many cases, the difficulties of the elderly were amenable to psychosocial intervention both with and without pharmacotherapy. These results support the concept that many psychological difficulties of the elderly are potentially reversible rather than inevitable consequences of aging. (Author/NRB)