This paper addresses the issue of the mental health of the elderly in homes for the aged, in view of the development of psychology and geropsychology as scientific disciplines. The mental health needs of the elderly are defined, and the degree to which they are provided in the general population surveyed. In light of these needs, the nature of nursing homes and the psychological well being of their residents is examined, revealing a widespread neglect of the mental health needs. The unsatisfactory status and functioning of psychologists in nursing homes is stressed, along with a discussion of the source of this problem. On the basis of these analyses, implications are drawn in the form of suggested theoretical and applied avenues for improvement. These are embedded in a model psychological service in homes for the aged. The service is described, including its setting, conceptualization, mode of interventions and operation, and the primary results of its work are presented. The paper concludes with implications-and prospects for the future.