The purpose of this study was to identify causal relationships between decisional balance for exercise, self efficacy for exercise and stage of change of exercise in the elderly. A hypothethetical model explaining stage of change was constructed based on behavioral change mode. Empirical data for testing the hypothetical model was collected from 198 old adults aged over 60 in community setting in Seoul, Korea in April and May. 1999. Data were analyzed by descriptive statistics and correlational analysis by using pc-SAS program. The Linear Structural Modeling (LISREL) 8.0 program was used to find the best fit model which predicts causal relationship of variables. The fit of the hypothetical model to the data was good(X^2=12.82. (df=4, p=.012), RMR=.05, GFI=.97, NNFI=.88, NFI=.96). The predictable variables of stage of change for exercise of the Korean elderly were perceived physical psychological benefit about exercise, perceived physical psychological burden about exercise and self efficacy for exercise. These variables explained 65% of stage of change for exercise of the Korean elderly.