This study aimed to provide a novel and comprehensive assessment of the relationship between Physical Capacity and Physical Activity in community-dwelling older adults using wearable sensors. Physical capacity was measured once in the lab setting, while physical activity was assessed over a one-week period. Data reduction techniques were used to identify the optimal parameters to express the interrelationship between PC and PA of community-dwelling older adults, as measured by the McRoberts MoveTest and MoveMonitor wireless health sensors.