This chapter seeks to explore how competency evolution and development can be tracked using contemporary educational data mining and knowledge tracing methods. It provides a critical review of empirical research on the data-driven tracking and diagnosis of competency evolution in highly interactive digital learning environments. We then examine the motivations, opportunities, and challenges associated with tracking and predicting competency development processes within interactive learning tasks. The chapter concludes by outlining the implications for future research and practical applications in data-driven competency tracing.