BackgroundActivity limitations and participation restrictions were observed in patients with diabetes, which may impact their quality of life. Environmental factors such as seasonal effects, resources and perceived stress may play important role in activity limitations and participation restrictions. In this study, a variant of International Classification of Functioning (ICF) model was used to clarify the associations of function/structure factors, personal factors and environmental factors with activity limitations and participation restrictions.MethodsThis was a longitudinal design with 1 year follow-up. The Mini-Mental State Examination (MMSE), Geriatric Depression Scale- short form, Perceived Stress Scale, and Instrumental Activities of Daily Living assessments were measured at 3-month intervals for long-term follow-up in 110 patients with diabetes aged ≥ 65 years.ResultsHierarchical linear regression models revealed that age (p= 0.001), perceived health status, MMSE scores (p< 0.01), and positive perceived stress (p< 0.001) were predictors of activity limitations (adjustedR2= 53%). GDS-S (p< 0.05) and positive perceived stress (p< 0.01) were predictors of participation restrictions (adjustedR2= 30%). Generalized estimating equation analysis indicated that seasonal effects, age, perceived health status, MMSE predicted the changes of slopes in activity limitations. Seasonal effects and GDS-S were predictors of the changes of slopes for participation restrictions (allp< 0.001).ConclusionsThe ICF can be used to identify the risk factors for activity limitations and participation restrictions in older adults with diabetes. Practitioners should provide individualized interventions with consideration of these risk factors.Supplementary InformationThe online version contains supplementary material available at 10.1186/s12877-023-03977-0.