Depression is a frequent complication of stroke with a prevalence of 25% to 79%, depending on the setting, assessment tool, and time poststroke. Patients with poststroke depression (PSD) show far less recovery from functional impairments compared with nondepressed patients with stroke. Many stroke patients have significant physical disability and an inability to carry out activities of daily living. This, in turn, adversely affects quality of life. Poststroke functional disability has been considered predictive of depression after stroke in some literature. However, studies differ on the relative contribution of functional impairment to PSD. The purpose of this article is to synthesize the literature on the relationship between PSD and functional outcome. This synthesis will help identify gaps in knowledge to further direct future studies and provide knowledge for clinicians to improve care and recovery after stroke.