The aim of this article is to present a literature review on work ability and functional ageing. An extensive search of publications from 1966 to 2006 was conducted using the databases MEDLINE, LILACS and SciELO. Several aspects of work ability are presented in this manuscript: the historical context when the theme emerged, the theoretical framework, the determinant factors and an explanatory model, the current methodology to evaluate and monitor the work ability, the importance of its promotion. Highlights of the current situation about the research, practice and future perspectives regarding the theme are also discussed. In the context of the workforce aging, the work ability became an important indicator because their consequences to the worker's health, well-being and employability, with impacts to the individuals, organizations and society. In spite of their relevance, there is a lack of attention to the issues about work ability and functional ageing.