The physical environment of long-term care settings can contribute to maintaining the self-management and independence of older people. This integrative literature review examined which features of the physical environment were considered valuable, and how they contributed to self-management and independence. The findings from 15 studies were grouped into two themes: the features supporting functionality, orientation, and safety and the features fostering motivation, attractiveness, and comfort. An optimal environment requires features of both themes to be present. Older people need to be able to do things they consider enjoyable in a place commensurate with their ability to function.