Background: One of the most significant social and psychological changes that may lead to disease and disability in today's world is the aging global population, that in turn resulted in a sharp rise in the number of older people living alone as in elderly homes. Engaging in physical and social leisure activities can promote the quality of life and psychological well-being of older adults. Aim:  This study aimed to determine the effectiveness of physical and social leisure activities program participation on feeling of loneliness, happiness and self-esteem among institutionalized elderly. Design: A pre-post intervention study as a quasi-experimental research design was used. Setting: Three governmental elderly homes in Dakhellia governorate namely; Dar El-Amal, Dar El-Malak Mikhael, and Dar El-Ber wa El-Wafaa in Mansoura city were the sites of the study. Subjects: A total of 56 elderly residents were included in the study. Tools: The data were collected through demographic and health-related characteristics interview sheet, mini-mental state examination, UCLA loneliness scale, Rosenberg self-esteem scale and the Subjective happiness scale. Results:  Study findings showed that the study outcomes including feeling of loneliness, happiness and self-esteem were significantly better after the program participation (p<0.001). Conclusion: Implementation of the physical and social leisure activities program is an effective strategy in reducing the level of loneliness, increase level of happiness, and enhancing self-esteem among institutionalized elderly. Recommendation: The developed program is recommended as an effective nursing intervention to reduce feeling of loneliness, enhancing happiness and self-esteem of older adults living in institutions or alone in community settings.