Objectives: This research article aims to measure the effects of group therapy on institutionalized elderly in terms of reducing depression and improving psychosocial functioning. Methods: Thirty elderly nursing home residents were recruited, and 16 of them elected to receive group treatment for depression and 14 declined treatment. The Multidimensional Observation Scale for Elderly Subjects and the Geriatric Depression Scale were given to both groups when group work began and again when it ended. Results: Clients who received group treatment experienced reductions in depression and their psychosocial functioning improved. Conclusion: Group work intervention was followed by reductions in the depression levels and improvements in their psychosocial functions among institutionalized elderly clients.