To determine the effectiveness of exercise in improving sensorimotor function and functional performance, crucial parts of activities of daily living in healthy older adults. RCT. Laboratory. 39 subjects (M = 71.8 years, range: 61-89 years). Task-oriented visual feedback balance training. Timed Up & Go (TUG). Chair stand test (CST), self-paced walk test, maximum isometric torque, quiet stand posturography, and dynamic balance (DB). Postintervention comparison of the treatment group (TG) and control group (CG) showed better TUG (p < .01), CST (p < .001), and DB (p < .025) for the TG. Pre-post intervention comparison of the TG showed better clinically-relevant outcomes in TUG (p < .001), CST (p < .001), and DB (p < .001). Active driven visual feedback balance training is effective in improving functional performance and dynamic balance in older adults.