In a previous chapter, it has been shown that anemia is prevalent among older persons. This chapter will describe that anemia is not only prevalent, but also has important adverse clinical consequences. For instance, anemia has been associated with decreased physical function, elevated risks for falls and fractures, cognitive impairment, and increased mortality. Notably, these detrimental effects are observed not only in elderly individuals with severe reductions in Hb, but also in those with mild anemia or low-normal Hb levels. The chapter starts with describing why good physical function is an essential clinical geriatric outcome. Subsequent sections provide research findings that have linked anemia with poor physical function and other important related outcomes. The last section summarizes the most important findings and will discuss implications for health care and future research.