This study determined the rates and correlates of depression among community-dwelling elderly people, based on data from the comprehensive health assessment conducted in Al-Dakhiliyah governorate in Oman in 2008–2010. Data covered sociodemographic characteristics, medical and nutrition status, functional abilities, depression and dementia. The rate of depression was 16.9%, higher among women than men (19.3% versus 14.3%). Depression was independently predicted by the presence of social risk (OR = 3.44), dementia (OR = 3.17), impairment in activities of daily living (OR = 2.19), joint problems (OR = 1.52) and mobility restriction (OR = 1.43). If dementia was excluded from the model, depression was additionally predicted by poor perception of health (OR = 2.09), impairment in instrumental activities of daily living (OR = 1.47) and older ages of 70–< 80 years (OR = 1.63) and ≥ 80 years (OR = 1.75). Although not presenting as a complaint, depression in not uncommon among elderly people.