Purpose <p>This study aimed to evaluate the effects of institutional care on sleep quality, cognitive functions, and quality of life in individuals aged 65 and over living in Türkiye.</p> Methods <p>This cross-sectional study included a total of 62 elderly individuals, either residing in a nursing home or living in their own homes. Participants were assessed using the Pittsburgh Sleep Quality Index (PSQI), Mini-Mental State Examination (MMSE), and WHO-5 Well-Being Index. After adjusting for age and education, ANCOVA confirmed that nursing home residents had significantly lower MMSE scores than community-dwelling individuals (F(1,58)=7.98, p=0.006, partial η²=0.121).</p> Results <p>The mean PSQI score of the participants was 8.06± 3.3, and 64.5% had a score ≥5, indicating poor sleep quality overall. The MMSE scores were significantly lower in nursing home residents compared to community-dwelling individuals (22.2 ± 4.4 vs. 25.2 ± 3.4; p = 0.005). These differences in MMSE remained significant after adjustment for age and education (ANCOVA, p=0.006). Sleep latency was shorter (p = 0.022) and daytime dysfunction was higher (p = 0.028) among nursing home residents, while sleep efficiency was significantly better in those living at home (p = 0.030). A weak but statistically significant negative weak correlation was found between PSQI and WHO-5 scores (r = –0.299, 95% CI: –0.51 to –0.05, p = 0.018). However, no significant correlation was observed between PSQI and MMSE scores.</p> Conclusions <p>Nursing-home residents exhibited lower cognitive performance and poorer sleep efficiency compared to community dwellers, reflecting group differences.</p>