Two measures of health, an index of functional and disability status and global selfrated health, and their transitions over a seven-year period were compared across two ethnic groups of elders in Taiwan: Mainlanders and Taiwanese. This ethnic division is considered a salient dimension of social stratification, shaping the two groups of elders'pathways through life. The results showed that Taiwanese elders experience a disproportionate burden on the two measures of health in part because of their lower socioeconomic status (SES). Also, Taiwanese elders are more likely to develop adverse health transitions than their Mainlander counterparts, and variations in perceptions of chronic illnesses may exist across ethnicity. The results suggest that both ethnicity and SES play important roles in linking social status to health status among this cohort of elders. Ethnicity and SES affect health collectively, and different components of SES may not confer the same health benefits across ethnic groups.