[Purpose] This study sought to determine an exercise regimen that can effectively improve degenerative osteoarthritis patients' muscle strength, proprioception, and functional performance. The regimen consisted of resistive exercises (RT) or manual therapy and resistive exercises (MT). [Subjects] The subjects were 35 elderly women who trained three times a week for eight weeks. [Methods] The 35 subjects were divided at random into RT and MT groups, according to the treatment method. [Results] Quadriceps strength significantly improved in both the RT and MT groups. Muscle strength increased to 4.35 N on the right side and to 3.55 N on the left side in the RT group, and to 10.59 N and 9.02 N, respectively, in the MT group. Only in the MT group did proprioception change significantly. The MT group showed a decrease in error from the target angle by -0.83° on the right side and -0.5° on the left side. Additionally, only in the MT group did functional performance change significantly; with the elapsed time in functional performance testing decreasing by 10.29 s. [Conclusion] According to the results, a regimen consisting of manual therapy together with resistive exercise appears to be more effective at improving muscle strength, proprioception, and functional performance than resistive exercise alone.