A review of the literature was conducted in order to identify the environmental variables that are believed to be important determinants of the behavior of aged institutionalized patients and to assess the implications of these variables for the design of living environments for the elderly. Several classes of environmental variables were explored, including those believed to have some effect upon locomotion, social interaction, and self-care skills. Proposals were made concerning the types of research that will contribute to the task of developing a nursing home living environment that generates and maintains desired behavior and retards the degenerative processes associated with aging.