Background –The incidence of falls & falls related injuries is high among institutionalized elderly as compared to community dwelling elderly population. The most common problem in elderly population is reduced balance and lack of postural control which is leading to increased risk of falls & instability during walking. This population needs to be both physically and mentally healthy for a better quality of life. Studies have shown that ageing leads to neurological changes so that it is affecting person’s physical and mental abilities. Objectives – To compare the effect of mental imagery and conventional treatment on dynamic balance in institutionalised elderly individuals. Material and method – The present study was conducted in Pune, India.100 subjects from institutionalised elderly were assessed as per inclusion, exclusion criteria and randomly allocated in two groups. Subjects in Group–A (n=50) received conventional physiotherapy. Subjects in Group B (n=50) received mental imagery along with conventional physiotherapy. Both the group received 12 sessions of intervention (3sessions/week) in 4 weeks. Dynamic balance was assessed by using TUG, FSST. The data was analysed by using Mann–Whitney rank sum test. Results – All outcome measures were homogenous at baseline (p>0.05).Intragroup & intergroup analysis revealed significant changes in outcome parameters (p<0.05).and experimental group was better than control group. Conclusion – This study concluded that that mental imagery along with conventional physiotherapy has a better effect in improving dynamic balance than conventional physiotherapy alone in institutionalized elderly individuals.