This paper examines the relationship between family change, public welfare and absolute economic poverty among the elderly age 65+ in transitional China. Drawing on both qualitative and quantitative data, and comparing different groups of the elderly population in poverty, it aims to shed light on a better understanding of the family and public welfare determinants of the elderly poverty, while taking into account the important role of socioeconomic factors in elderly life. Model results suggest that family structure and public welfare are important associates of absolute economic wellbeing: those elderly who live alone, widowed, without a son or without children are more likely to suffer from economic poverty, while those with retirement pension and public medicare suffer significantly less from poverty. Findings also demonstrate that socioeconomic status (including education and occupation) achieved in the early life stage is also strong predictor of their risk of suffering from economic poverty. Such findings have profound policy implications for the improvements of economic wellbeing of the elderly.