This study aimed to characterize physical function and functional capacity related to low muscle mass and sarcopenia in older women with low bone mass. In the study, 122 older women with bone loss were included and divided into three groups according to the presence or absence of muscle loss and sarcopenia; bone loss only, bone loss and muscle loss, and bone loss and sarcopenia groups. Multinomial logistic regression analysis was conducted using the three groups as dependent variables. Body mass index (BMI) (odds ratio; 0.566, 95% confidence interval; 0.431-0.742), Kihon checklist of “motor function” (odds ratio; 2.230, 95% confidence interval; 1.179-4.217), and “homebound” (odds ratio; 5.123, 95% confidence interval; 1.122-23.391) were extracted as relevant factors in the bone loss and sarcopenia group. In addition to low BMI, sarcopenia in older women with reduced bone mass is associated with lower “motor function” and “homebound” functional capacity.