Background: Fear of falling and previous falls are both risk factors that affect daily activities of older adults. However, it remains unclear whether they independently limit daily activities accounting for each other. This study aims to examine whether previous falls and fear of falling independently predict limited daily activities among older adults.Methods: We used the data from Round 1 to Round 5 of the National Health and Aging Trends Study. We included a total of 866 community-dwelling participants who provided data on previous falls, fear of falling and limited activities from Round 1 to Round 5 and had no limited daily activities at Round 1 in this study. Previous falls and fear of falling were ascertained by asking participants whether they had fallen in the past year and whether they had worried about falling in the last month. Limited daily activities included any difficulties with mobility (e.g., going outside), self-care (e.g., eating), and household activities (e.g., laundering). Generalized estimation equation models were used to examine whether previous falls and fear of falling independently predicted development of limited daily activities adjusting covariates.Results: Participants were mainly between 65 and 79 years old (83%), male (57%), and non-Hispanic White (79%). Among participants who fell in Round 1, 13.2%-27.6%, 29.0%-52.0%, and 18.4%-32.9% developed limitations in mobility, self-care, household activities during Round 2 to Round 4, respectively. Among those who had fear of falling in Round 1, 22.5%-41.3%, 30.0%-55.0%, and 18.8%-36.3% developed limitations in mobility, self-care, and household activities during Round 2 to Round 4, respectively. Fear of falling independently predicted limitations in mobility (Incidence rate ratio [IRR]: 1.86, 95% CI: 1.50, 2.31), self-care (IRR: 1.32, 95% CI: 1.11, 1.62) and household activities (IRR: 1.34, 95% CI: 1.11, 1.62) after adjusting for previous falls and covariates. Previous falls only independently predicted limitations in mobility (IRR: 1.30, 1.08, 1.56) and household activities (IRR: 1.27, 95% CI: 1.05, 1.54) after adjusting fear of falling and covariates. Conclusions: While recognizing the risk factor of previous falls, fear of falling can be a more critical factor to intervene to reduce limited daily activities.