Imbalance and general weakness are amongst the most common impairments in the elderly and put them at a significantly higher risk of falling. Therefore, this study aims to compare the physical and cognitive functions towards fear of falls among 80 community-dwelling elders with and without diabetes mellitus. The results revealed that there was a decline in cognitive functions, reduced in physical function and high risk of falls among the elderly with diabetes. In conclusion, balance and resistance training need to be included in the daily exercise regime to reduce the risk of falls in the elderly, especially those with diabetes.