Hip and knee osteoarthritis (OA) is common among Chilean adults over 60, impacting their functionality. This study aimed to determine how health factors such as disease severity, type of OA, medication use, and physical activity levels relate to functionality in individuals with OA. The sample size included 67 women and 13 men aged 38 to 92 (66.6 ± 11.2) with diagnosed knee or hip OA. The International Physical Activity Questionnaire-Short Form (IPAQ-SF) was used to estimate physical activity, the Lequesne Index for functional impairment, and the VAS (Visual Analog Scale) for pain. Data were collected from December 2022 to March 2023. We performed bivariate analyses, which indicated that greater OA severity and bilateral OA are associated with increased functional impairment and pain. Medication use was correlated with higher pain levels, and physical activity was correlated with functionality; there was no correlation with age. Here, 65.4% of the variance in functionality problems was explained by OA severity, bilateral involvement, and pain level, highlighting their impact on functionality. Functionality problems were higher in individuals who suffered higher levels of severity when they performed lower levels of physical activity. These findings underscore the importance of promoting physical activity to improve the quality of life for individuals with OA.