The paper examines the causal relationship between disability and poverty among Indian elderly. Using different poverty measures and statistical tests, the paper also attempts to analyze the depth of poverty among disabled elderly. A special round of National Sample Survey data on disability is used for this purpose. The results confirm the hypothesis of causal relationship between poverty and disability. Further, our analysis suggests for higher level of poverty and income inequality among disabled elderly and differences in the income levels vary significantly across different age groups, gender, social group and educational status.