Emotion regulation (ER), or the ability to modulate the experience and expression of emotion, is critical to adaptive functioning and is a key feature of mood disorders. At the same time, normal aging is associated with changes in ER, though the interaction of aging with the presence of a mood disorder are unclear. Here, we review what is known about ER and its underlying neural mechanisms in late life mood disorders, specifically late life depression and bipolar disorder. We also review behavioral and neuromodulation therapies that seek to reduce negative affect and improve positive affect. We conclude with recommendations for future research into the nature and mechanisms of ER and interventions targeting ER in older adults with mood disorders.