The predictive validity of a Functional Capacity Evaluation, the Physical Work Performance Evaluation (PWPE), was examined in 30 workers compensation patients with musculoskeletal dysfunction who participated in an industrial rehabilitation program. Return-to-work recommendations were made by comparing the discharge PWPE to the physical requirements of the job. Kappa coefficients were used to compare PWPE recommendations to actual work at discharge, 3 months and 6 months. Substantial agreement was found between PWPE recommendations at all three follow-up points. This study provides preliminary evidence in support of the predictive validity of the PWPE for making return-to-work recommendations at the conclusion of an industrial rehabilitation program.