The current study focuses on the development of a finite element model of the hip capsule ligament to represent the joint between the femur and the pelvis. The finite element model of the hip capsule is represented as comprising of eight sectors, consisting of the important ligaments in those regions of the capsule. The geometric parameters for the capsule are determined from available literature. A soft tissue material model is used to represent the nonlinear behavior of the capsule ligaments. Available hip distraction test data is used to validate the finite element model. A parametric study is conducted with the isolated capsule sector finite element model to understand the effects of different material parameters on the tensile load-deflection response of the capsule. The material properties for each sector of the hip capsule are systematically estimated to match the corresponding values from isolated capsule sector tensile tests reported in the literature. A verification exercise for the sector hip capsule material properties is carried out by considering a setup comprising an integrated pelvis-hip- capsule-femur finite element model and comparing with data available from hip distraction tests in the literature. The stiffness of the hip capsule finite element model is found to lie within the reported test corridor from hip distraction tests. The developed hip capsule finite element model will be of use in examining the stresses and strains in the joint ligaments.