This paper explores a novel method for anxiety detection in older adults using simple wristband sensors such as electrodermal activity (EDA) and photoplethysmogram (PPG) and a context-based feature. The proposed method for anxiety detection combines features from a single physiological signal with an experimental context-based feature to improve the performance of the anxiety detection model. The experimental data for this work are obtained from a year-long experiment on 41 healthy older adults (26 females and 15 males) in the age range 60–80 with mean age \(73.36 \pm 5.25\) during a Trier Social Stress Test (TSST) protocol. The anxiety level ground truth was obtained from State–Trait Anxiety Inventory (STAI), which is regarded as the gold standard to measure perceived anxiety. EDA and blood volume pulse (BVP) signals were recorded using a wrist-worn EDA and PPG sensor, respectively. 47 features were computed from EDA and BVP signal, out of which a final set of 24 significantly correlated features were selected for analysis. The phases of the experimental study are encoded as unique integers to generate the context feature vector. A combination of features from a single sensor with the context feature vector is used for training a machine learning model to distinguish between anxious and not-anxious states. Results and analysis showed that the EDA and BVP machine learning models that combined the context feature along with the physiological features achieved 3.37% and 6.41% higher accuracy, respectively, than the models that used only physiological features. Further, end-to-end processing of EDA and BVP signals was simulated for real-time anxiety level detection. This work demonstrates the practicality of the proposed anxiety detection method in facilitating long-term monitoring of anxiety in older adults using low-cost consumer devices.