Social relationships can have considerable influence on physical and mental well-being. AL research suggests that other residents are among the most available social contacts and that co-resident relationships can affect life satisfaction, quality of life, and well-being. Although functional status influences social relationships, research has yet to provide an in-depth understanding of how cognitive and physical function affects co-resident relationships in AL. In this thesis, I present an analysis of qualitative data collected over a one-year period in two diverse settings. The thesis addressed: 1) How does functional status influence co-resident relationships? ; and 2) What factors shape its influence? Analysis was guided by principles of Grounded Theory Method. Coming together and pulling apart signifies the key finding that functional status is multi-directional, fluid, and operates in different ways in various situations and across time. Facility and resident –level factors further affect the influence of functional status on co-resident relationships.