In today’s fast moving world, mobile devices such as smartphones, tablets, and other PDAs are a central component in achieving effective and convenient communication. In today fast developing world of IT and commerce, the growth of mobile computing (MC) has become a force to be reckoned with. However, it is not without its own set of challenges; these devices are dependent on battery life span, storage, bandwidth, and security and mobility. These challenges have slowed down the growth of the service quality of these devices. The intrinsic challenges of mobile computing are being overcome by imputing and saving data in cloud computing. It is done by using various service providers aside from the mobile device service providers for hosting the mobile applications’ delivery. Mobile cloud computing is a branch of cloud computing and it provides ease of use and mobility to its users. Mobile cloud computing is described as services of cloud computing that are available in mobile environment. This study offers thorough knowledge of the capabilities and challenges faced in mobile cloud computing.