My study is about depression and feeling of loneliness among homeless elderly people in Ethiopia. It is mainly aimed to measure depression and feeling of loneliness among homeless elderly people who are living in an elderly home. The research also analyzes the effect of the social relation of elderly homeless people in their psychosocial health. In order to achieve this goal, I have used internationally recognized tests like the geriatric depression scale and geirveld Loneliness scale. The result also shows the social bond between elderly people and their family and friends has a great impact on their psychosocial health.