BACKGROUND: The purposes of this study were to examine the state of depression and life satisfaction of family caregivers and to find out which factors would be significant in determining depression and life satisfaction of caregivers for the elderly with dementia. METHODS: Caregivers of patients with dementia who were registered at nine medical centers in Busan Metropolitan City and Gyeongnam Province were the major subjects of this study. Data was collected by face-to-face interviews. The final sample consisted of 144 cases after eliminating several incomplete questionnaires. Based on the collected data, the authors evaluated demographic findings, general characteristics, and factors influencing depression and life satisfaction of the caregivers using statistical analyses. RESULTS: The severity of depression and the degree of life satisfaction in family caregivers were low. We found that caregiver's anxiety, monthly income, caregiver burden, non-relative network, self-confidence of caregiving, and the degree of the Barthel index of activity of daily living (B-ADL) were significant factors in determining depression of the caregivers (p<0.05). The following two variables were significant factors in determining the caregiver's level of life satisfaction: burden of caregiving costs and patient's Korean mini-mental state examination (K-MMSE) score (p<0.05). CONCLUSIONS: Our results showed that the level of anxiety, caregiver burden and social support, rather than the conditions of dementia patients, influenced depression and life satisfaction for the caregivers of patients with dementia. Therefore, in order to improve the quality of life for caregivers, we should consider psychosocial factors as well as patient's medical factors in influencing depression and life satisfaction.