To investigate age-associated changes in functional fitness (FF) among Chinese older women and to identify any urban-rural disparity. Nine hundred and sixty-five participants aged 60-84yrs were assessed for their functional fitness. They were stratified into five groups by age and two groups by residential areas. Two-way ANOVA was used to observe the group differences in functional fitness, and linear regression analysis was conducted to identify each of the functional fitness measures as a function of age and residential area. All functional fitness tests showed a significant decline across age groups. Age-related decline in muscle strength occurred relatively earlier (age 65-69) compared to the decline in aerobic endurance (age 75-79). Linear regression analysis indicated that age has notable effects on each of the functional fitness measures and predicts balance control better than other factors. Urban participants outperformed their rural counterparts in all FF tests except for upper body flexibility and BMI. Notably, the greatest disparity occurred between 70 and 79years of age. Enhanced physical fitness monitoring and targeted interventions that focus on strength training and increasing moderate- to high-intensity leisure-time physical activity are necessary to improve the functional fitness of Chinese older women, especially those in rural areas.