Capsular contracture occurs when scar tissue forms around a breast implant, causing hardening and potential discomfort. To diagnose it, patients should look for signs such as breast firmness, tightness, pain, and changes in shape or position of the implant. Doctors typically assess these symptoms through a physical exam and may use imaging tests like ultrasound or MRI for confirmation. Early diagnosis is crucial to manage the condition effectively and determine if surgery or other treatments are needed.