This article examines the policy on residential care for the elderly in Hong Kong. The argument is founded on an empirical study which involved a review of relevant policy documents, a survey research, and personal interviews. The study shows that the provision of residential home places in Hong Kong is grossly inadequate. This is illustrated by the long list of applicants awaiting residential places. The relatively poor psychological state of those elderly people who could not secure proper placement is another indicator to reflect the inadequacy of elderly home places. The main problem of elderly care rests with the system of provision, to which improvements should and could be made. However, in the final analysis, it is the lack of government commitment to this area of service that has presented the most important obstacle to the development of a well thought out and well implemented policy for the elderly in the territory.