Vestibular disorders cause functional limitations or decreased ability to perform activities of daily living independently. These problems are not necessarily predicted by vertigo scales or physiologic measures. Therefore, the clinician should evaluate functional ability using self-rated scales or direct observation of specific skills of interest. This paper will review the literature and important issues related to assessment of functional performance and participation in activities of daily living in the vestibular disorders population. Self-rated scales have the benefit of being relatively quick but may be inaccurate. Direct observation may be time consuming and a thorough evaluation of all skills may not be possible in the context of out-patient or home-based care. This paper reviews the available scales and discusses the major problems in functional assessment of patients with vestibular disorders.