In his action theory, John Dewey makes use of the concept of capability to highlight the way human capacities depend on the environment and the character of an agent. In his capability approach, Amartya Sen likewise refers to the environment by discussing the role of conversion factors. Yet, he abstains from a discussion of character development, presumably in order to allow for a variety of conceptions of the good and ways in which characters can develop. In this paper, I develop (...) the outlines of a pragmatist capability theory by enriching the core concepts of Sen’s capability approach with the Deweyan notions of habit and character. In this way, the role of the environment in the capability approach can be reaffirmed and supplemented by a notion of character development. Subsequently, I explore the implications of this framework for Sen’s notions of impartiality and freedom. The result is a pragmatist capability theory which builds on Sen’s conceptual framework and puts additional emphasis on character development and sensitivity to one’s environment. (shrink)