The aim of this paper is to analyse participatory video as a participatory action research method through the lenses of the capability approach. In order to do this, we used a participatory video experience that took place in the municipality of Quart de Poblet (Valencia, Spain) from February to March 2014. The participants were 11 young people between 16 and 24 years of age, severely affected by the economic crisis that has hit Spain in recent years. To develop our analysis, we introduced the participatory video as a technique and a process within the participatory action research methods. Then, we analysed the participatory process to verify the extent to which it had contributed to expanding the capabilities and agency of the participants. The evidence revealed a significant expansion of the awareness capability and, in some cases, of the capability for voice. In contrast, the capability to aspire and the agency of the participants were not expanded, due to contextual factors and the limitations of the process itself.