The impact of depression on functional recovery in older adults following hip fracture is unclear. We aimed to examine the association between depression and 4-month functional recovery of older inpatients with hip fracture. We conducted a longitudinal cohort study on older hip fracture patients admitted to an Orthogeriatric Unit between January 2021 and February 2022 within the multicenter "Gruppo Italiano di Ortogeriatria" network. Depression was assessed retrospectively from patient medical history. Poor functional status was a Cumulated Ambulation Score ≤4 after 4 months. The sample included 154 patients (72.1% females, mean age 81.9). A history of depression was reported in 25.3% of participants. Depression was independently associated with higher odds of poor functional outcome (OR = 2.94, 95%CI: 1.15 - 7.85). Depression predicts a poorer functional recovery after hip fracture. The identification and treatment of depression might promote better physical recovery in orthogeriatric patients.