Background: Physical and mental abilities generally diminish with the natural process of aging. Exercise on a regular basis is essential for everyone. Adequate physical exercise in older adults is associated with a better life. Improvements in both physical and mental health are linked to laughter therapy.The aim of the current study was to examine the unrecognized combined effects of aerobic exercise and laughter therapy on functional, cognitive, and psychological well-being in the elderly. Patients and methods: A total of 60 elderly individuals were divided into two groups; the experimental group (n=30), which received aerobic exercise with laughter therapy, and the control group (n=30), which received the identical experimental group's aerobic exercise program only, 3 times a week over 6 weeks. Body mass index, blood pressure, functional capacity (assessed by the 6-minute walk test distance), functional activity level (evaluated by the Functional Independence Measure), cognitive function (determined by the Mini-Mental State Examination), and psychological status (estimated by the Geriatric Depression Scale) were all assessed at baseline and after 6 weeks. All participants completed the study, and the outcome measure data were analyzed. Results: By comparing the experimental group to the control group, all measured variables revealed a significant change in both groups (p < 0.001) but in favor of the experimental group rather than the control. Conclusions: The elderly may benefit physiologically and mentally from laughter therapy combined with exercise. Laughter therapy may be a powerful method for inspiring people to engage in physical activity and obtain greater results.