Background: Functional health status is paramount for older adults residing in the community, serving as a cornerstone for independence and enhancing their quality of life. Given the reduced functional capacities of older individuals, they are notably more susceptible to the impacts of their immediate environments. To facilitate a healthy, secure, and active lifestyle for older adults within the community, it is imperative that their neighborhood fosters a harmonious person-environment relationship and encourages heightened physical activity. Walkable neighborhoods play a pivotal role in promoting the physical activity of older individuals. Objective: This study aimed to identify the relationship between perceived neighborhood environment walkability and the functional health status of community-dwelling older adults. Settings: The study was conducted at five outpatient clinics within Matrouh General Hospital, affiliated with the Egyptian Ministry of Health and Population. Subjects: the study included 260 individuals aged 60 years and older with no or mild cognitive impairment and did not rely on assistive walking aids. Tools: Four tools were used to collect data, older adults' Socio-demographic and Clinical data Structured interview schedule, the Saint Louis University Mental Status (SLUMS) Examination, Neighborhood Environment Walkability Scale-Abbreviated (NEWS-A), and The Dartmouth COOP functional status assessment charts/WONCA (COOP/WONCA) charts. Results: A statistically significant correlation was noticed between functional health status and neighborhood walkability in terms of land-use mix-access, street connectivity, aesthetics, and the absence of cul-de-sac roads (r = 0.140, p = <0.001; r = 0.189, p = <0.001; r = 0.158, p = <0.001; and r = 0.159, p = <0.005, respectively). Conclusion: The study highlighted a significant relationship between older adults' perception of neighborhood walkability domains including street connectivity, aesthetics, and the presence of cul-de-sac roads, and their functional health status. Recommendations: Disseminate the research findings concerning the impact of a walkable neighborhood environment on the functional health status of older adults through scientific conferences and mass media platforms to be a guide for the development of future age-friendly communities.