In the present study the authors investigated the relationship between visual and auditory acuity and everyday activity functioning. Participants were 516 older adults (70-103 years; equal numbers of men and women) who were members of the age-stratified Berlin Aging Study. Two categories of everyday activity functioning, perceived competence with basic activities of daily living (BaCo; basic competence) and amount of participation in discretionary social and leisure tasks (ExCo; expanded competence), were examined. The results revealed that sensory acuity, particularly vision, was a significant predictor of both BaCo and ExCo (rs ranging from .32 to .47). Indeed, hearing and vision could explain most of the age-related variance in everyday activities. At the same time, in the context of a broader model, evidence for the differential prediction of BaCo and ExCo was found, although there was also evidence for strong general age-related predictive variance that was common to both measures. Discussion focuses on the role of sensory acuity constructs as mediators of age-related variance in psychological and behavioral outcomes and the potential causal implications of this mediation.