Purpose: Although disability is widely acknowledged as a risk factor for late-life depression, few studies have studied the potential of psychosocial factors to alter the association between disability and depression. The present study assessed the impacts of mastery and social resources (social network, social support, and satisfaction with support) on depression and, in particular, whether they modify the link between disability and depression. Design and Methods: The direct and moderating effects of mastery and social resources were empirically tested using a sample of 406 community-dwelling older adults who were cognitively intact (mean age = 72.3). Results:Higher level of mastery and greater satisfaction with support had significant direct effects on depression and also buffered the adverse impact of disability on depression. Implications: The findings support the importance of psychosocial factors in modifying the association between disability and depression and suggest that efforts to enhance positive psychosocial attributes should be emphasized in interventions for older adults.