Objective: Lewy Body dementia (LBD) is characterized by fluctuations in cognition and arousal, as well as progressive problems with visuospatial processing, attention, memory, and executive functioning (McKeith et al., 1992). Functional impairment (i.e., activities of daily living (ADLS) and instrumental activities of daily living (IADLs)) and depression (McKeith & Burn, 2000) have been reported in LBD. There is little research examining the association of depression and cognition in LBD. The purpose of this study is to examine whether depression can explain additional variance of functional impairment beyond cognitive functioning deficits seen in LBD patients. Method: Archival data of 690 LBD patients from the National Alzheimer's Coordinating Center (NACC) data was used for this study. The measures included: NACC Neuropsychological Battery, Geriatric Depression Scale, and Functional Assessment Questionnaire (FAQ). Results: Hierarchical regression indicated that the cognitive variables explained 15.7% of the variance (p < .001) of functional impairment (FAQ). Only Trails A and B were significant predictors in the model (ps > .01). Depression severity did not significantly explain any additional variance. Pearson correlation indicated that depression severity had only a small relationship with overall daily functioning. Specifically, Spearman rho correlations indicated that depression was related to many, but not all items of the FAQ (e.g., shopping, travel, stove use). Conclusion: Depression severity was not a significant predictor after controlling for cognitive variables and had only small correlations with functional impairment. These findings may be due to issues with level of insight into psychological well-being and perceived functioning of ADLs and IADLs in LBD patients.