Mary Parker Bailey, 85, a resident of Leesburg for many years, died Wednesday at Westminster-Canterbury House, a retirement home in Richmond.

She was the wife of Dr. William Otis Bailey, a retired eye, ear, nose and throat specialist in Leesburg.

They had lived there from 1924 until moving to Richmond in 1975. They also had lived for a number of years at Pemberton, a historic home near Aldie, Va.

Born in Wytheville, Va., Mrs. Bailey grew up in Washington where she attended private schools. She and Dr. Bailey were married in 1917 while he was serving as a Navy medical officer.

A member of the Colonial Dames of America, Mrs. Bailey had been active in the Leesburg Garden Club and St. James Episcopal Church in Leesburg where she had headed the Altar Guild.

In addition to her husband, who also lives at Westminster-Canterburg House, she is survived by a daughter, Mrs. Harry L. Merring Jr., of Scotsdale, Ariz. two sons, William O. Bailey Jr., of Washington, and the Rev. Edwin P. Bailey, of Great Falls, Va.; a sister, Mrs. William V. Cash, and a brother, retired Army Maj. Gen. Edwin P. Parker Jr., both of Washington; another brother, MacRea Parker, of Arlington, and seven grandchildren.

The family suggests that expressions of sympathy may be in the form of contributions to St. James Church in Leesburg.