This paper describes the outcomes of an NSF-funded undergraduate engineering training project launched at the University of Arizona - College of Engineering. The program aims to engage senior-year students in a capstone design project focused on biomedical applications of nanotechnology. The senior design team has previously attended a micro- and nanofabrication and a mechatronics technical elective courses. Both courses have been adjusted to better suit the goals of the program. Modifications include a self-guided research component, requirement to utilize a nanotechnology based sensors or actuators in a biomedical application. Formative evaluation data has been gathered through personal interviews to assess changes of students attitudes towards nanotechnology. Data includes reports from junior-year members of the technical elective classes, along with graduate assistants serving as mentors of the undergraduate participants. Results indicate that students who enrolled in Fabrication Techniques for Micro- and Nano-devices gained formal knowledge about nanotechnology through lectures and hands-on activities, while those who joined a senior design team learned about nanotechnology by interfacing regularly with the faculty advisor who imparted his knowledge and enthusiasm about nanotechnology applications during design team meetings. Students who took the first course in the sequence, Guided Self-Studies in Mechatronics prior to the capstone design experience benefited most.