The objectives of this research were 1) to analyze the community's capacity to develop community-engaged process innovation and 2) to evaluate community-engaged process innovation to enhance community capacity for sustainable community resource management in the context of Northern Thailand. This research employed Participatory Action Research (PAR). The samples used in the research were divided into two groups: 1) the information providers for the community capacity analysis, consisting of 18 individuals including religious leaders, formal leaders, and school administrators, selected using snowball sampling; and 2) the process innovation evaluators, consisting of 5 faculty members and experts, selected using purposive sampling. The total number of participants was 23. The research instruments used were 1) document analysis forms, 2) unstructured interview forms, and 3) a community-engaged process innovation assessment form to enhance community capacity. Qualitative data were analyzed using content analysis, and quantitative data were analyzed using statistical software to present results in the form of means and standard deviations. The analysis results were then presented in a Descriptive Analysis. The research findings revealed that: 1) the guidelines for developing community capacity to foster community-engaged process innovation comprise two components: 1) Guidelines for analyzing community capacity, which include three steps: 1.1) Assessing community capacity, 1.2) Designing and developing innovation, and 1.3) Applying innovation for sustainable community resource management. And 2) Guidelines for sustainable community resource management, which include three steps: 2.1) Community empowerment, 2.2) Operational improvement system, and 2.3) Performance measurement. Moreover, the evaluation of community-engaged process innovation to enhance community capacity towards sustainable community resource management in the context of Northern Thailand revealed that the community-engaged innovation process, also known as the EDA & CIM model, was evaluated as being of the highest quality.