The Collaborative Capability Definition Engineering and Management Technology Demonstration (CapDEM TD) project is investigating Capability Engineering (CE) in order to support the Capability‐Based Planning (CBP) decision‐making process. This paper presents the evaluation effort being applied to the Capability Engineering approach, a methodology based on the systems engineering paradigm and articulated around three axes: People, Process and Materiel. Originating from the laboratories of Defence R&D Canada, the CapDEM effort is now evolving from theory into practice, based on an on‐going evaluation strategy concretely realized via three validation exercises that consist of realistic simulations of people applying the process and materiel to resolve capability gaps. This paper details the evaluation strategy and includes lessons learned from the first and second validation exercises. The tenets and expectations from the final exercises will form the final part of the paper, with the intent of providing insight into the advancement of capability engineering.