To understand graduate employability, this paper uses a landscape of practice (LofP) lens, and methods including narrative frames, observations, and interviews to interpret capability development and identity construction of learners in a work-based learning masters program. It argues that learners enhance employability, capabilities, and knowledge through mutual engagement in practices of their communities of practice (CofP). Furthermore, it showcases that this process is enacted through learners’ membership and negotiating boundaries of their community as they move from one community to another within their LofP. It then re-examines the definition of capability and argues that capability should be understood as a social construct through which individuals participate in the practices of their CofP and express knowledgeability of community norms and practices. It concludes that individuals build capabilities through a process involving problem solving, negotiation and learning, resilience, and reflection on their own and other members’ actions as they engage in interactions.