With growing old there are social, psychological, and physiological changes. These changes require the elderly to make various adjustments. Frustration and difficulties regarding adjustments often cause psychological problems. Therefore, it is important to apply effective nursing interventions to enhance psychological health of the elderly. Among various modalities of geropsychiatric therapy, reminiscence therapy is the more popularone. Numerous researchers have reported the psychological benefits of reminiscence therapy. The purpose of this article is to introduce the application of reminiscence therapy in the nursing care of the elderly. Its definition and theoretical base, functions and goals, types, and conducting guidelines are discussed. Communication, active listening, acceptance, and empathy are always the key points of the nursing process; hence, nurses are the most appropriate healthcare providers for conducting the reminisce process. Nurses working in various healthcare settings have the opportunity to initiate reminiscing therapy for the elderly to provide holistic nursing care and help them resolve past conflicts as well as achieve ego integrity.