Objectives: To compare older adults' and occupational therapists' (OTs) awareness of patients' functional abilities at discharge from inpatient rehabilitation using patient performance in the home as the criterion for functional abilities. Design: A prospective cohort study. Setting: Inpatient rehabilitation unit of a large community hospital followed by observation at home. Participants: Thirty-four older adult patients who live alone and had acute hospital admission for orthopedic, medical, or cardiopulmonary primary diagnoses followed by inpatient rehabilitation. Measurements: Patients' and OTs' perceptions of patients' abilities at hospital discharge were recorded for basic and instrumental activities of daily living (ADLs) and mobility using the Functional Autonomy Measuring System. One week following discharge, patients' functional performance was measured at home. Awareness was calculated as the difference between perceptions and performance. Results: There was greater than 82% exact agreement between patients' and OTs' perceptions for: eating, bathing, dressing, toileting, transferring and walking, but only 52% agreement for meal preparation. Patients' awareness for all ADLs and mobility was about 80% accurate except for stair-climbing, meal preparation, and medication management. OTs' awareness was greatest for tasks routinely assessed while in hospital (e.g., eating, dressing, toileting, transferring, walking and stair-climbing) and for telephone use and meal preparation. Overall patients' awareness was equal to or higher than OTs' awareness for all activities except stairclimbing, meal preparation, telephone use, and medication management. Conclusions: Awareness of functional abilities varies by activity and rater and is an important element of discharge planning for community living.