The objective of this study is to explore the index of physical performance test in detecting physical functional status among elderly people. Physical performance test, recommended by Yale University in EPESE was used in the study. A total number of 1,986 people aged 55 and over in urban and rural area of Beijing was studied in a three-year longitutinal observation. Among 1,986 cases studied in 1992, 168 died between 1992-1994. The mortality rate increased along with the degree of functional disablement, lowest in non-disabled (3.4%), followed by mild ones (5.2%), moderate (10.5%) and highest in severely disabled (18.4%). It is shown that performance test can be used as a tool in observing and detecting risk groups in the progress of functional disability It's an important index describing the decline of health status.