OBJECTIVE Previous reports have underlined the importance of physical activity for physical functioning in older age. As recent results suggest that living in nursing homes is negatively correlated to physical activity level, this survey examined whether muscular power, balance abilities and response times differ between community-dwelling and institutionalized old women. METHODS A sample of 31 community-dwelling and institutionalized women aged 77-86 years was recruited. Groups did not differ in age, weight, height, or BMI (p > 0.05). Measurements of upper limb power, balance control, and response time were conducted. Upper limb power was tested by dumbbell biceps curl exercise with increasing loads (0.5, 1, 1.5, and 2 kg). Overall daily time expenditure for walking and further physical activities as well as kinds of further activities were examined via questionnaire. RESULTS The community-dwelling subjects achieved significantly better results in tests of upper limb power and response time (p <or= 0.002 and = 0.014) than the institutionalized participants. No significant differences were found in balance control (p = 0.086). Both daily walking time and time for further physical activities were higher in community-dwelling subjects (p = 0.002 and 0.017). CONCLUSIONS Based on our findings we conclude that independent lifestyle may contribute to higher muscular power and faster response times in older age. To analyze balance abilities in this age group safe and easy to use laboratory testing devices should be developed. We found physical activity levels to be higher in the community-dwelling cohort. However, we do not know whether reduced physical activity is the cause or rather the consequence of institutionalized living.