Established in 2004, the Philippine Defense Reform (PDR) Program envisioned the implementation of reforms that would affect every level of the Philippine defense establishment and military. The ultimate goal of PDR was to create more capable armed forces. To do that, PDR focused on reforming the defense establishment for the benefit of the Armed Forces of the Philippines (AFP). Therefore, PDR required the support and focus of senior leaders and staff at all levels and a substantial commitment of people. This paper explores why, from a Philippine perspective, PDR was needed and how it was implemented through the Defense System of Management (DSOM) approach. This paper will also describe how the United States Department of Defense (DOD) partnered with the Republic of the Philippines Department of National Defense (DND) in implementing PDR with a particular focus on multi-year defense planning and the related areas of capability planning and defense budgeting.