The long-term benefits of physical activity and exercise have been shown to provide numerous health gains to older adults (Karani, McLaughlin, & Cassel, 2001). Remaining physically active can contribute to successful aging by maintaining function, improving psychological well being, managing chronic pain, and enabling a more independent lifestyle. Despite the benefits of land-based exercise, repetitive weight bearing can inflict strain on the joints and muscles of older adults (Evans, Cureton, & Purvis, 1978). Aquatic exercise is a rapidly growing alternative, especially for individuals with arthritic disabilities. A widely used form of aquatic exercise is the Arthritis Foundation Aquatic Program (AFAP). The purpose of this study was to determine the efficacy of participation in an AFAP on improving physical and psychological performance as well as daily life functioning of older adults. Participants were 10 men and 12 women (M age=76.36, SD=7.28). The 11-week program consisted of 1-hour pool sessions on a MWF schedule. Sessions were lead by a certified Arthritis Foundation instructor. Prior to beginning the program participants completed a questionnaire on medical history along with informed consent statements. Pre- and post- data collected on mental measures included the Brief Pain Inventory and the Zung’s Self-Rating Depression Scale. Data on physical measures were obtained from the following tests: sit and reach, hand grip dynamometer, Sharpened Rhomberg Test along with dominant and non-dominant one-legged tests, and two items from a standardized Activities of Daily Living Scale measuring mobility and dressing. Statistical comparisons were performed using multivariate ANOVA with repeated measures on time (pre vs post program). Differences were considered significant when p<0.05. Significant differences were not found on any physical measures. Posttest data revealed better mean scores on all tests except the timed dressing activity. Significance was found on all reports of chronic pain with the exception of pain relief from medications (percentage of how much relief they received). Participants reported reduction in chronic pain and interference of pain in such events as general activity, mood, walking ability, sleep, and enjoyment of life. Additionally, post program measures on the Zung’s scale showed significantly lower scores (M=34.77, SD=7.10 vs pre-program of M=37.77, SD=8.30). Results of this study indicate participation in aquatic exercise is a viable method of controlling chronic pain and ameliorating mood among older adults. Aquatic exercise can be an essential psychological treatment option for older adults with arthritis. Further, study results show a tendency toward improvement in physical ability.