Complaints of sleep disturbance increase with age and many studies have been reported on the relation of sleep problems with greater use of health services, physical and mental morbidity, functional decline and all cause mortality. This study aimed to examine the sleep patterns and sleep disturbances in Iranian older people and to see how their sleep quality relates to their health status. 400 men and women, 60 years or older, interviewed by trained psychiatrist regarding their physical and mental health status, then the Pittsburg Sleep Quality Index, the Epworth Sleepiness Scale, and General Health Questionnaire implemented on them. The gathered data analyzed by chi-square test, t-test, one-way analysis of variance and logistic regression. The results showed that the majority of participants (82.6%) suffered from poor sleep quality and approximately one third had sleepiness (29.2%) during daytime. Difficulty falling (p≤0.001) and maintaining (p≤0.01) sleep and feeling too hot at night sleep (p≤0.005) were significantly more prevalent in women, but men suffered more from leg twitching (p≤0.01). Being female (OR=2.52), and having GHQ scores more than 11 (OR=4.14) increased the risk of poor sleep quality considerably. Promoting sleep hygiene education and screening of mental health problems in primary health care services for older people are recommended.