The purpose of this study was to determine the effects of a multicomponent exercise program on basic daily functions and muscle strength in community-dwelling frail older people. The randomized, controlled study comprised 46 community-dwelling frail older people (above 74 years of age and not able to leave their home without mobility aids). For 12 weeks the intervention group (n = 22) was transported to 2 class-based exercise sessions each week. Assessment of physical function was obtained using Berg's Balance Scale and a walking test. Self-reported functional ability was assessed through SF-36. Maximal oxygen uptake and maximal voluntary contraction of the shoulders' abductors were measured. The intervention group had a significant improvement in balance, muscle strength, walking function. and self-assessed functional ability compared with the control group. This study demonstrates that multicomponent exercise has a significant effect on basic daily functions and muscle strength in community-dwelling frail older people and might improve their ability to live an independent life.