We study the living arrangements and consequences for depression of the elderly in China using data from the CHARLS in 2013 and 2015. It uses pooled regression and Two-way FE model to analyze the depression of elderly between different living arrangements. We study people in the sample age sixty and older, find that different living arrangements affect life depression of elderly, and compared to living with one or more grown children, elderly respondents living nearby grown children have least depression, especially in the same village or neighborhood. We believe that with the development and progress of society, elderly living with their children will not make the elderly more satisfied with their lives.