The primary purpose of this study was to determine whether muscle strength or power is a better predictor of fallers (including both single and recurrent) in everyday living conditions among community-dwelling older adults. Secondly, we identified the optimal threshold of the identified fall predictors to best differentiate fallers from non-fallers. Ninety-four healthy older adults (72.0 ± 5.5 years) participated in the study. After reporting retrospective falls from the past year, participants were assessed for isometric strength capacities of the knee extensors and flexors. Lower limb power performance was calculated based on the time used to complete the five times sit-to-stand (STS) test. Fifty-six participants (59.6%) reported not falling, and 38 participants (40.4%) reported one or more falls in the past year. No significant differences were found between non-fallers and fallers for knee extensor ( p = 0.729) and flexor ( p = 0.157) strength capabilities. Non-fallers took significantly less time to complete the STS test ( p = 0.010) and demonstrated more leg muscle power ( p = 0.016) than fallers. The overall accuracy of classifying fallers and non-fallers was 63.8% and 64.9% for leg muscle power and the STS duration, respectively. The leg power and STS duration optimal cutoff values to discriminate fallers and non-fallers were determined as 1.3 W/(kg × m) and 12 s. Results suggest that STS leg muscle power is more predictive of everyday living falls than strength in community-dwelling older adults. Findings provide valuable information to assist with screening high fall risk older adults and develop muscle power training-based interventions to prevent falls in this population.