The purpose of this annotated review of literature was to examine the effect of leisure activity on depression in the elderly. Despite some limitations, the literature, in general, suggests an inverse correlation between leisure activity and depression in the elderly. Individuals who engaged in leisure activity, whether it was physical exercise or more sedentary activity such as card games, were less depressed than individuals who did not engage in leisure activity. More scientific research is needed, however, to confirm this effect. Further studies could serve to define leisure activity as a tool for treatment in the field of occupational therapy.