Introduction: Perhaps two of the greatest human achievements to have occurred from prehistoric to more recent times, and, particularly, in the last two centuries, are the increase in the human population worldwide and the extension of human longevity. Quality of life (QOL) of elderly people is becoming even more relevant towards an ageing society. In community, less is known regarding special needs and quality of life of elderly people either in familial situations or in old age residences. Objectives: The present research was undertaken to assess and compare the quality of life of elderly living at home and in old age home. Methodology: A cross-section descriptive research was conducted among eldery popation aged 65 years and above. A total of 60 elderly people, half were enrolled from old age home (OAH) and equal number of sample was selected from the home setting. QOL of elderly was assessed using SR-36 questionnaire after taking informed consent from the participants Results: The results of the relationship between the SF-36 questionnaire domain indicate that the best correlation has been gained in the domain of Physical Functioning (correlates with all domains other than general health) and therefore we conclude the relationship between physical and emotional health of the elderly. The social functioning of the elderly will be better if the elderly feels less constrained because of emotional problems and physical health, and the emotional well-being is better in that case. That way, the experience of pain will be smaller. Elderly people in their own home are better at physical functioning while at the same time they feel larger limitations in their physical functioning, most likely due to the inadequacy of their living space, they are better in energy / effort, and as nwell in their emotional well-being. Older people in the institution are about 2.5 years older than in their own home, they feel less constrained by emotional problems, have better social functioning, the pain is smaller and general health is better. Conclusion: The QOL which each individual possess is very important in all aspects be it physical, psychological, social, environmental. Only if they have fulfilment in all these aspects in life they have a high QOL.