Background/Objectives: Cognitive decline may be associated with functional decline in older people, even when this relationship is controlled by important social and biological predictors. Objective: To assess the relationship between cognitive decline and physical performance in community-dwelling older people and to identify factors associated with low physical performance. Methods: This is a cross-sectional study, composed of older people (>= 60 years) living in the city of Parnamirim, Brazil. Data on sociodemographic factors, clinical-functional characteristics, cognitive deficits (assessed using the Legan & eacute;s Cognitive Test), and physical performance were collected. Statistical analysis was performed using Student's t, Chi-square, and Poisson regression tests. Results: Seven hundred and sixty older people were evaluated, with an average age of 70.18 (+/- 7.11) years. The prevalence of cognitive dysfunction was 19.3%. There was a statistically significant association between cognitive deficit and physical performance (p < .001). The factors associated with low physical performance were age (p <= .001), female sex (p <=.001), use of psychotropic drugs (p = .025), diagnosis of diabetes mellitus (p = .028), and the presence of cognitive deficit (p = .001). Conclusion: We found an association between cognitive decline and physical performance in a sample of communitydwelling older people. Low physical performance was associated with older age, female sex, presence of diabetes, use of psychotropic drugs, and deficits in cognitive function. Significance/Implications: Health professionals must be aware of potentially modifiable factors and develop effective preventive and nonpharmacological care measures to improve health outcomes in the older population, thus improving quality of life, promoting independence, and reducing cognitive-functional disabilities.