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National Defense Force capability or Military capability1 is a broad term which is quantified in terms of human skill, readiness, sustainability, modernization and force structure to determine size and composition of military forces. It is also the ability to achieve a specified wartime objectives- for example: win a war or destroy a target. Overall it is potential of the armed forces to achieve military objectives in support of political purpose. This is directly related to military expenditure and economic development in government policy, sustainable security condition, and wise use of resources. Establishing a nexus between the capability to undertake military activities and economy of countries is critical issue for sustainable development. Reason for building National Defense Force was to get peace and security; to win and fight; for deterrence but not to wage war. It helps for economic development through soft power and to protect a country or its population. Thus, the main purpose of this study was to analyze the challenges on the practices of nexus between military capability and economic development of the Ministry of Defense in to account.