Objective? To investigate the status quo of depression and cognitive function of the elderly in aged care institutions in the urban area of Hangzhou, analyze the influencing factors of cognitive function and its correlation with depression, so as to provide reference for the design of later intervention measures. Methods? A total of 130 elderly people from 3 aged care institution of 3 districts of Hangzhou were recruited by convenience sampling method from March to May 2018. Montreal Cognitive Assessment and the Chinese version of Geriatric Depression Scale were applied to assess the cognitive function and depression symptoms of the elderly in aged care institutions. Logistic regression analysis was used to explore the influencing factors of cognitive function, and Pearson correlation analysis was applied to analyze the correlation between depression and cognitive function in elderly people in aged care institutions. Results? The incidence of depression in the elderly was 24.62% (32/130) and the incidence of mild cognitive impairment was 89.23% (116/130). The results of Logistic regression analysis showed that gender (OR=5.379,95%CI: 1.152-25.109), age (OR=1.129,95%CI:1.008-1.266) and educational level (OR=0.353,95%CI: 0.193-0.645) entered the model. Pearson correlation analysis showed that there was no significant correlation between depression level and cognitive function in the elderly in aged care institutions (P＞ 0.05). Conclusions? Depression and cognitive status of the elderly people in aged care institutions are in urgent need of attention. It is suggested that an intervention that focuses on reducing the incidence of depression and cognitive impairment should be provided to improve the quality of life of the elderly people.