This study explored the determinants of self-rated health and happiness for elderly, institutionalized Canadians in the 1994/95 National Population Health Survey: Health Institutions. Separate ordinal logistic regression models were developed for self-rated health and happiness in a subsample of 780 elderly residents. The results indicate that older Canadians in institutions vary in their ratings of their health and happiness, and that demographic characteristics, illness-related factors, disability and social integration predict these variations. Both self-rated good health and happiness were consistently associated with being older, having fewer chronic diseases, fewer perceived memory difficulties and less pain. Whereas good health was associated with higher education and independence in ambulation, happiness was associated with greater grasping ability, more frequent attendance at group activities in the institution and the community and having a flexible schedule. These findings have important implications since many of the factors identified are potentially modifiable through rehabilitative and nursing interventions.