This study aimed to examine the effects of inhaled aromatherapy on depressive symptoms and sleep quality among institutionalized older adults. A randomized controlled pre-test/post-test experimental design was adopted. A total of 96 residents aged 65 years and older were recruited from a residential care facility in northern Taiwan and randomly assigned to a morning experimental group, an afternoon experimental group, or a control group. Participants in the experimental groups received inhaled aromatherapy by wearing a “mask aroma clip” once daily for approximately 1 hour over a 4-week period. The essential oil blend consisted of lavender, sweet orange, and bergamot. Research instruments included the Geriatric Depression Scale– Short Form (GDS-SF) and the Pittsburgh Sleep Quality Index (PSQI). The results indicated that depressive symptoms decreased in both experimental groups after the intervention ( p < .05). However, after controlling for covariates such as gender, age, and education level, no statistically significant differences were observed among the three groups. Regarding sleep quality, although the pre-post comparison showed a decreasing trend in PSQI scores, the change did not reach statistical significance. The study supports inhaled aromatherapy as a safe, easy-to- administer, and potentially beneficial non-pharmacological intervention, particularly suitable for emotional care among institutionalized older adults. Future research is recommended to incorporate objective physiological indicators and long-term follow-up to verify the sustained effects and underlying mechanisms of the intervention. The reduction in PSQI scores was approximately 1 point across the three groups; however, further repeated-measures ANCOVA revealed statistically significant differences among groups. The effect size (Partial η2 = 0.19) indicated a large effect, suggesting that the aromatherapy intervention has meaningful clinical implications for improving sleep quality. These findings support the value of aromatherapy for use in older adult populations.