Aging is associated with myriad changes in behavioral performance and brain structure and function. Given this complex interplay of brain and behavior, two streams of findings are reviewed here that show that aging is generally associated with dedifferentiated neural processes, and also changes in functional connectivity. This article considers an integrated view of how such age-related dedifferentiation of neural function and changes in functional connectivity are related, highlighting some recent findings on differences in small-world architecture in the functional connectivity of young and older adults. These findings suggest that both neural connectivity and the organization of these connections are important determinants of processing efficiency with aging that may be the underlying mechanisms for dedifferentiation. Thus, the evaluation of the neurocognitive effects of aging on functional connectivity provides an alternative framework that captures the behavioral and brain changes that are observed in cognitive aging.