BACKGROUND: With the increase of life expectancy, the number of nursing homes accommodating institution-based older adults has also increased. It is important to determine the link between functional decline and cognition among elderlies to assist health care professionals in providing the necessary care to ameliorate the living conditions of elderlies in home institutions. METHODS: This descriptive observational study with correlational design recruited 30 institution-based older adults from three nursing homes in Leyte, Philippines. The researchers used Montreal Cognitive Assessment (MoCA), Timed-Up, and Go Test (TUG) and 10-Meter Walk Test (10MWT) to assess the functionality of the participants and Pearson Product Moment Coefficient Correlation to determine the association between functional mobility and cognitive function. Simple linear regression analysis was employed to determine the level of significance of functional mobility and cognitive function while multivariate linear regression analysis was used to examine the relationship of adjusted covariates. Statistical significance was set at (p˂0.05). RESULTS: The prevalence of probable cognitive impairment was 90%, which was predominant in ≥ 70 years old and male (91.6%). The common functional problems were impairment in dynamic balance and mobility at 70% and gait speed at 73.3%. The result showed significant correlation between the cognition and functional mobility. CONCLUSION Cognitive impairment is highly prevalent in nursing homes. Institution-based older adults showed impaired dynamic balance and slow speed. Significant correlation between functional mobility problems and cognitive decline in institution-based older persons was established.