ISIS is now desperately trying to cling onto its strongholds in the two countries, but are losing ground fast in areas like Mosul and Raqqa.
The clip also features the elderly man taking a group of boys on a shopping trip to buy loose-fitting clothes so they are able to conceal suicide vests and other weapons beneath it.
ISIS has been known to use footage of children in the past to shock and appall its opponents.
One graphic video, released earlier this year showed a child shooting a prisoner at point blank range while standing in the middle of a kids' ball pit.
The child aims his weapon at the man's face before screwing up his face in fear as he shoots.