This study presents an analysis of the impact of training (capacity development) through three foreign aided project in AJK. For that purpose a customized set of capacity domains was developed using standard analysis tools devised and used by UNDP against whom the change due to trainings will be measured. The variables of the model are Relevance, Performance, Efficiency, Effectiveness, Sustainability, Community Participation. The study is theoretical as well as statistical in nature. The statistical estimates and analysis are based on a data set of various surveys and scheduled interviews. The study concludes that although trainings for the extension workers and master trainers were relevant and efficient but they couldn''t provide desired results as these workers couldn''t pass on the knowledge gained to the ultimate beneficiaries of the project. This study identifies some inherent flaws and exclusion of some important factors which rendered the trainings less effective. Sustainability and community participation were the weaker areas of the project and created some negative effects. The analysis also includes recommendations for more prudent future policy making of such projects. This research study is first of its kind for the Azad Kashmir. This will help not only in presenting an overview of lessons learnt, strengths and weaknesses of the foreign aided projects. But will serve as data base for short term and long term planning and future research