Over a three-year period, 204 consecutive patients admitted to a psychiatric unit for the elderly were studied and their progress was followed for a further two years. For three-quarters, it was their first ever admission to such a unit. More than half were suffering from a functional psychiatric disorder. In 35.8 % a life stress was of aetiological importance. 27.9 % were discharged to their own homes, 31.9% into care and 35.3% died. 17.6% were admitted on at least one further occasion. Male sex, age over 75 and the presence of organic psychiatric disorders were associated with an unfavourable outcome. Age under 75, married civil status and functional psychiatric disorder were associated with a favourable outcome. Re-admission was common amongst females who were admitted with a diagnosis of psychotic depression, and discharged to their own homes. A life stress including a loss of physical health in the year preceding admission did not adversely affect outcome. At a time of life when many losses are experienced and physical powers are reduced, the elderly seem remarkably resilient and able to work through the crisis which has brought about their admission.