The aim of this study was to find out if there are associations between the deterioration of glucose tolerance and balance, gait or muscle strength among non-institutionalised northern Finnish subjects aged 70 years or over. 79% of the eligible 483 subjects participated in the study (n = 379; of whom 141 were men). 14 % (n = 19) of the men had previously diagnosed diabetes, 9% had undiagnosed diabetes, and 32% had impaired glucose tolerance (IGT). The corresponding figures for the women were 19% (n = 46), 9% (n = 21) and 35% (n = 84). The proportion of the female subjects with good balance tended to decrease along with the deterioration of the glucose tolerance status and there was a trend that disturbances in gait (walking speed, step length among the women) increased along with the deterioration of glucose tolerance. A greater proportion of the previously diagnosed diabetic subjects had decreased thenar (p = 0.09), interosseus (p = 0.00), tibialis anterior (p = 0.003), tibialis posterior (p = 0.07) and peroneus (p = 0.03) muscle strength and decreased or missing biceps (p = 0.019) and quadriceps (p = 0.010) tendon reflexes. More of the subjects with abnormal glucose tolerance had weakening of the abdominal muscles compared to the persons with normal glucose tolerance (NGT) (p = 0.001). A greater proportion of the previously diagnosed diabetic subjects had abnormal vibration sense in the sternum compared to the subjects with NGT (p = 0.028) and the tendency was similar for undiagnosed diabetes. As a majority of the abnormal findings in this study were made among the previously diagnosed diabetic patients, the long duration of hyperglycemia probably contributes to the development of these disturbances. Therefore, early detection and active treatment of hyperglycemia might prevent or at least delay the development of signs of diabetic neuropathy among elderly subjects.