The aging process causes changes in physical, psychological, and social functioning that can affect an older adult’s ability to perform Instrumental Activities of Daily Living (IADL). A decline in IADL ability can increase dependence on others, which may affect psychological well-being and increase the risk of stress. This study aims to determine the relationship between the ability to perform Instrumental Activities of Daily Living (IADL) and stress levels among older adults in the Madurejo Community Health Center (Puskesmas) service area. This study used a quantitative method with a correlational analytical design and a cross-sectional approach. The sample consisted of 80 older adults selected using purposive sampling. The research instruments used were the Lawton Instrumental Activities of Daily Living (IADL) Scale and the Depression Anxiety Stress Scale (DASS-21), specifically the stress subscale. Data analysis was performed using the Spearman rank correlation test with a significance level of α = 0.05. Most older adults had IADL abilities in the “fairly independent” category, namely 42 respondents (52.5%), and nearly half experienced moderate stress, namely 37 respondents (46.3%). The results of the Spearman rank test showed a significant relationship between IADL abilities and stress levels among older adults (p < 0.001), with a moderate, positive correlation. There is a significant relationship between IADL ability and stress levels among older adults in the Madurejo Community Health Center service area. The higher the level of dependence older adults have in performing instrumental activities, the higher the level of stress they experience.