The purpose of this study was to develop a life satisfaction scale (LSS) suited for elderly Finnish people. The subjects were non-institutionalized elderly living in rural and urban areas in south-western Finland. They were interviewed for a prospective follow-up study (TURVA project) concerned with the psychosocial development of elderly people during retirement. Following the interview, the first version of the LSS was submitted to 339 respondents. It was completed and returned by 330 (97%). This version of the scale was then reduced to a 26-item version (LSS-A), which had a high reliability coefficient (Cronbach alpha 0.89). In factor analysis, LSS-A consisted of three main components: psychic balance, assessment of past life, and present happiness. An abbreviated 12-item scale (LSS-B) was also drawn up. When the number of items was reduced, the roles of psychic balance and present happiness were emphasized. The LSS, proved to be easy to use, its reliability was good, and the correlations between the sum score of LSS and the questions concerning life satisfaction in the interviews suggested fairly good validity. To further evaluate the validity and applicability of the scale, we need further studies in different types of elderly populations.