As one ages naturally, it is vital to focus on happiness, contentment, and overall well-being. As individuals age, they may face challenges in performing essential activities for their independence and overall well-being, which significantly affect their functioning and quality of life. Addressing limitations in activities of daily living is crucial for older adults seeking to achieve fulfilling lives. This study aimed to evaluate the relationship between the Functional Independence Level and Subjective Well-being index of the elderly population while assessing factors influencing their Activities of Daily Living. of the 750 elderly study subjects, 94.53% were found to be fully independent. 4.93% were moderately independent, and 0.27% had severe functional impairment. The main factor affecting ADL was 13.91% shivering of hands and 13.04% general weakness. subjective well-being categorizations based on scores: 75.87 of individuals exhibit good subjective well- being (81-120), 17.60 show moderate well-being (61-80), and 6.53 fall into the category of poor subjective well-being (40-60), with corresponding frequencies of 569, 132, and 49 individuals, respectively. At a statistical significance level of 0.01 (p < 0.01), the chi-squared value of 25.314 indicates an association between improved ADL levels and enhanced SWB in older adults. Among the elderly, those who were slightly dependent showed greater improvements in subjective wellbeing than those who were moderately dependent. The more independent a person is, the greater their overall life satisfaction. Conclusion: Elderly who are more independent in ADLs show a decrease in the number of those slightly or moderately dependent and an increase in self-reported happiness. Greater independence is linked to increased overall life satisfaction.