The objective of this project is to incorporate rapid prototyping technology into a mechanical engineering capstone design course. Rapid prototyping is a relatively new technology which allows producing physical models directly from computer-aided design files. Until recently, this technology was too expensive for small educational programs to afford. However, a paper-cutting and gluing process now allows the manufacture of reasonable parts at a very low cost. As opposed to using rapid prototyping for visualization only at a freshmen-level engineering graphics class, we will use this technology to enhance an advanced, senior-level design course in several ways. First, the design process implemented by the students while working on their projects will be augmented by physical models which can convey both function and form. Second, the students' perspective on design will be broadened by incorporating many life-cycles concerns early in the design process. Third, design communication will be vastly improved by the models, and finally, the students will acquire a sense of reality, responsibility, and excitement which can only be obtained by turning a paper- or computer-based design into a tangible product. The familiarity of students with rapid prototyping techniques is an important benefit too. Our program has strong ties to local industry, with about half of the students working full- or part-time while attending school. We shall explore the advantages offered by incorporating model-building in the capstone design class and disseminate the results so that other universities may benefit from them.