Objective In the absence of a functional impairment assessment scale, this study aims to develop the formal version of function impairment screening tool (FIST) for the Chinese elderly based on the preliminary version of FIST using Delphi method. Methods A total of 305 elderly adults were assessed using the preliminary version of FIST. With correlation coefficient method, Cronbach coefficient method and factor analysis method, we calculated the correlation coefficient between the score of each item and the total score, the corrected item-total correlation (CITC), the Cronbach′s α after deleting an entry, the common factor variance and the factor loadings. Based on the results, the formal version of FIST was developed. Results A total of 300 valid questionnaires were received. According to the statistical results, the “social activities” item was deleted. Although the statistical results revealed that “eating”, “washing”, “dressing”, “continence”, and “physical exercise” should be deleted, these items except “continence” were retained after panel discussion. The FIST was finalized with 3 first-level indicators and 16 second-level indicators. Conclusion Based on the results of a piloting investigation using its preliminary version, the FIST was finalized after item screening with classical statistical methods and the experts′ suggestions.