Psychological assessment, as traditionally done, has not been adequate for obtaining a valid profile of older people's functional status. What is needed in the 1980s is evaluation of systematically obtained data from a number of substantive domains (e.g., physical health, coping skills, cognitive functioning, affective status) and careful integration of these data to formulate intervention programs. Current assessment procedures frequently used with the elderly are reviewed critically, and specific directions for future research are recommended.We wish to thank Mary Armen and Martha Moore for their technical assistance in preparing this manuscript. We particularly want to thank Margaret Gatz for her helpful editorial assistance.