Background: Mild hyponatremia (serum sodium 130-135 mEq/L) is a common electrolyte disorder in the elderly. However, its association with both sarcopenia and cognitive function remains to be clarified. Therefore, here we investigated the association of mild hyponatremia with skeletal muscle mass, physical function, and cognitive function in the elderly. Methods: We enrolled 75 participants with mild hyponatremia and 2872 with normonatremia (serum sodium, 136-145 mEq/L) aged ≥70 years who visited the Memory Disorder Outpatient Center of Japan’s National Center for Geriatrics and Gerontology. Skeletal muscle mass index (SMI), grip strength (GS), walking speed (WS), one-leg standing (OLS) test times, and neuropsychological test scores were determined. Results: One-way analysis of covariance showed that the participants with mild hyponatremia had significantly lower SMI, GS, WS, OLS time, and score on the 15-item Geriatric Depression Scale compared with those with normonatremia. Multiple logistic regression analysis indicated that mild hyponatremia was independently associated with weaker GS (odds ratio [OR]: 2.3, p = 0.048), slower WS (OR: 7.6, p = 0.01) and shorter OLS time (OR: 2.1, p = 0.03) as well as with severe depressive mood (OR: 2.6, p = 0.001) but not with sarcopenia (OR: 1.9, p = 0.09) or SMI (OR: 1.7, p= 0.1). Conclusions: Our results suggest mild hyponatremia in the elderly was associated with impairment of physical function, especially including WS and OLS, and depressive mood.