ABSTRACT This study aims to analyze the institutional capacity building in poverty alleviation of Sragen Regency by forming UPTPK (the Integrated service of poverty Alleviation Unit). The unit was established in Sragen since the poverty alleviation programs that has been conducted in Sragen still met several obstacles. The problems is in the coordination aspect among the institution participated in poverty programs which is still ego-sectoral. Moreover the procedure to get the recoomendation as SKTM (Surat Keterangan Tidak mampu) is too complicated and take a long time. Thus, the emergence of UPTPK is expected to overcome this poverty alleviation problems. This thesis used descriptive - qualitative method to analyze the data. The reseacrher analyzed the UPTPK institutional capacity in Sragen by observing and digging the data from various resources in Sragen and related it to the institutional capacity of UPTPK namely Leadership, Organizational Structure, Inovative programs, Resources and coordination capacity. This study revealed that UPTPK hold strong support from Sragen Regent as the local authority in running UPTPK organization. Moreover UPTPK supported by competent human resources that has a alot of experiences in poverty alleviation programs previously. Yet, the quantity of the workers was still limited to conduct all of the duties of UPTPK. The institution status as a unit made UPTPK weak in financial management and had only limited budget to run their organization. However, UPT-PK has launched many innovative programs in povety alleviation. The programs help to overcome the poverty problems in Sragen. One of the innovative programs is verification and validation procedure by using the form of survey developed by UPTPK with scoring system. To keep the validity of the data, UPTPK involved many parties in determining RTM (Rumah Tangga Miskin ). The coordination of UPTPK and the other parties in poverty alleviation run well. It happen because the support from the local authority in Sragen that instruct all parties in Sragen to use the database of the poor released by UPTPK to deliver their donation and poverty alleviation programs. The recommendation of the study is UPTPK need to be keep established. Moreover, the government should strenghten the institutional status of UPTPK so that UPTPK can have more authority to manage their financial budget and resources and also can develop their innovative programs more into the empowerment program for the poor so it can be more effective in alleviating proverty. Key words : Capacity building, institution, poverty alleviation, integrated service