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Abstract. Depression is a problem which is experienced by elderly. Insomnia is one of the negative effects of being depressed. Insomnia can cause serious problems such as stress, anxiety, and decreasing the quality of life of the elderly. The purpose of this research was to identify the correlation between depression and insomnia incidence on elderly in South Denpasar. This study employed analytical correlation design with cross sectional approach. The population of this research was 117 elderly from Banjar Sindhu Kaja, South Denpasar which were chosen by using total sampling technique. The data were collected by using questionnaire about Geriatric Depression Scale to assess depression levels and the Pittsburgh Insomnia Rating Scale to measure insomnia levels. Based on the Person Product Moment Coefficient Correlation showed that there is a significant correlation between depression and insomnia incidence with p-value 0.001. In conclusion, the higher depression level of the elderly, the higher their insomnia level. Therefore, it is expected for the elderly to do physical activities based on the abilities, join useful activity, and have positive thinking to avoid risk of depression and insomnia.