The results of neuropsychological tests are often used by clinicians to make important decisions regarding a demented patient's ability to competently and/or independently perform activities of daily living. However, the ecological validity of most neuropsychological instruments has yet to be adequately established. The current study examined the relationship between neuropsychological test performance and functional status in 42 individuals diagnosed with Alzheimer's Disease. A comprehensive battery of cognitive tests was employed in order to assess a wide range of neuropsychological abilities. Functional status was measured through the use of both a performance-based scale of activities of daily living (The Direct Assessment of Functional Status; Loewenstein et al., 1989) as well as by a caregiver/informant-based rating scale (Instrumental Activities of Daily Living; Lawton & Brody, 1969). Findings suggest that neuropsychological functioning is moderately predictive of functional status. Memory performance was the best predictor of functional status in most ADL domains, followed by executive functioning and visuospatial abilities.