<p>This study aims to compare upper extremity muscle thickness, hand grip strength, manual dexterity, and cognitive functions in elderly individuals living in the community and nursing homes. A total of 85 older adults with similar demographic characteristics, aged 65–80 years, 39 living in nursing homes and 46 community-dwelling older adults, were included in a cross-sectional study. Hand grip strength (HGS) was assessed via the Jamar hand dynamometer, and pinch strength was assessed via the Jamar digital pinch gauge. The Purdue Pegboard Test (PPT) was used to assess manual dexterity, and the Stroop T-Bag Test was used to assess cognitive function. In addition, upper extremity muscle thickness was assessed via ultrasonography. The forearm, biceps brachii, triceps brachii and deltoid muscle thicknesses were lower in elderly people living in nursing homes than in adults living in the community (p &lt; 0.05). HGS and pinch strength were greater in adults living in the community than in adults living in nursing homes (p &lt; 0.05). The total PPT score was higher in adults living in the community than in adults living in nursing homes (p &lt; 0.05). The MOCA score and Stroop test composite score of elderly individuals living in nursing homes were worse than those of adults living in the community (p &lt; 0.05). In this study, older adults living in nursing homes were observed to have lower upper extremity muscle thickness, handgrip strength, pinch strength, manual dexterity, and cognitive performance compared with community-dwelling older adults. This may be related to differences in living conditions, social resources, and environmental factors between the two groups. These findings suggest that maintaining upper extremity muscle thickness and strength, manual dexterity, and cognitive functions may be important for older adults living in nursing homes. </p>