Background: Laughter yoga is one of the increasingly used methods among complementary health approaches in the world. The aim of this study was to determine the effectiveness of laughter yoga on physical function and psychosocial outcomes in older adults. Methods: In this systematic review, electronic searches were performed in CINAHL, Web of Science, COCHRANE, Scopus, ProQuest databases from May 2010 to May 2020. The screening process was conducted by two authors independently and finally agreed together. The review was reported according to PRISMA guideline. Results: A total of 3210 studies were examined, and seven publications (six quasi experimental and one randomized control trial), in accordance with the inclusion criteria were included in the study and evaluated. The results indicated that significant differences were found in the effectiveness of laughter yoga on physical function (blood pressure, cortisol level, sleep quality) and psychosocial health (life satisfaction, quality of life, loneliness, death anxiety, depression, mood, happiness) in older adults. Conclusion: Laughter yoga is a cost-effective and no adverse effect in older adults. It can be used for health promotion for older adults. Keywords: Blood pressure; Depression; Happiness; Laughter therapy; Life satisfaction; Loneliness; Older adults; Quality of life..