The recently introduced Mechanistic-Empirical Pavement Design Guide (MEPDG) and related software provide capabilities for the analysis and performance prediction of different types of flexible and rigid pavements. An important aspect of this process is the evaluation of the performance prediction models and sensitivity of the predicted distresses to various input parameters for local conditions and, if necessary, re-calibration of the performance prediction models. To achieve these objectives, the Minnesota Department of Transportation (MnDOT) and the Local Road Research Board (LRRB) initiated a study "Implementation of the MEPDG for New and Rehabilitated Pavement Structures for Design of Concrete and Asphalt Pavements in Minnesota." This report presents the results of the evaluation of default inputs, identification of deficiencies in the software, sensitivity analysis, and comparison of results to the expected limits for typical Minnesota site conditions, a wide range of pavement design features (e.g. layer thickness, material properties, etc), and the effects of different parameters on predicted pavement distresses. Since the sensitivity analysis was conducted over a span of several years and the MEPDG software underwent significant modifications, especially for flexible pavements, various versions of the MEPDG software were run. Performance prediction models of the latest version of the MEPDG 1.003 were evaluated and modified or recalibrated to reduce bias and error in performance prediction for Minnesota conditions.