Although illness is often linked to low morale among the elderly, most persons cope with and adjust to illness. A hypothesized model of favorable family response to illness suggests the importance of resources as mediators to avoid crisis. To test this model, 53 older patients with lung disease and their spouses were interviewed about individual and family adjustment. Fourteen categories of resource items were included, centering on health, social support, finances, and coping. Results showed that although most respondents were in poor health, they appeared well or fairly well adapted. Good health, cognitive coping, formal supports, greater financial savings, and spouse employment were predictors of better adaptations. Informal support systems were predictive of poorer adaptation, which may reflect the reality of severe illness and greater disability. The investigation of crisis with a view to resources has policy as well as research implications, suggesting the need for improving the resources of the aged to enable better psychosocial outcomes. (JAC)