This chapter centers on the capability approach (CA), a framework that reimagines the concept of development. At its heart is a critical distinction between capabilities—the genuine freedoms individuals possess to pursue lives they have reason to value—and functionings—the realized states that constitute those valued lives. This evaluative lens shifts attention away from the mere allocation of resources and toward what people are free to do and be as well as what they actually do and are. As such, the CA advances a model of human agency that is not only normatively robust but also rich its account of motivations and the translation of means to ends. In terms of motivations, it acknowledges that individuals are driven by both self- and other-regarding goals. Additionally, central to this framework are conversion factors—personal, social, and environmental conditions—that influence how resources are transformed into freedom and welfare. Finally, rationality plays an important role in the CA. In contrast to dominant models, which often rely on a narrow, instrumental logic, the CA adopts a more expansive view: reasoning. It embraces deliberation, value pluralism, and context-sensitive judgment. Despite these significant contributions, the CA’s emphasis on reasoned behavior leaves open the possibility for further refinement.