Introduction: Acquiring knowledge about the association between musculoskeletal pain and psychological symptoms among Malaysia’s multi-ethnic older population could facilitate the development of efficacious preventive and therapeutic strategies for this vulnerable group. Hence, this study aimed to examine the association between musculoskeletal pain, psychological symptoms, and pain interference among community-dwelling older adults in Malaysia. Methods: This cross-sectional study recruited 106 community-dwelling older adults attending a primary care clinic in Cheras, Malaysia. Brief Pain Inventory Short-Form (BPI-SF) and General Health Questionnaire-28 (GHQ-28) questionnaires were used to measure musculoskeletal pain characteristics and determine the presence of psychological symptoms, respectively. Logistic regression analyses examined the association between musculoskeletal pain characteristics, psychological symptoms, and pain interference. Results: Participants’ mean (SD) age was 68.0 (6.3) years, and there was an almost equal gender distribution, with the majority being of the Chinese (64.2%) ethnic group. About 78.3% of older adults experienced musculoskeletal pain disorders, with knees (31.2%), lower back (22.1%), and shoulders (18.2%) being the most commonly affected. Around 53.7% reported pain in multiple body sites, and 47.2% stated that their pain disorders interfered with daily activities. Furthermore, 83.0% had depression symptoms based on the GHQ-28 assessment. The logistic regression analysis indicated that stairs use at home, regular exercise, and pain intensity were significantly associated with pain interference. Conclusion: Musculoskeletal pain is prevalent and is associated with psychological symptoms among older adults. Therefore, effective treatment strategies for musculoskeletal issues should be based on a biopsychosocial approach to alleviate the impact on daily activities in older adults.