Terry will captain England in their Euro 2012 qualifier against Wales later this month and Capello was at Stamford Bridge to watch the defender, whom he stripped of the captaincy last January.
Chelsea 0 FC Copenhagen 0: Read Matt Barlow's match report Face in the crowd: Fabio Capello watches Chelsea at Stamford Bridge
Didier Drogba and Nicolas Anelka missed a host of chances and Fernando Torres again failed to score his first Chelsea goal after coming on as a 68th minute substitute.
But two goals in Denmark three weeks ago were enough to see Carlo Ancelotti's side join Tottenham Hotspur and Manchester United in the quarter-finals.
And Ancelotti feels his side are capable of winning the competition, depite being held at home by the Danish outfit.
'I think the performance was good,' he said. 'We didn't want to take a risk for this game and prepared well. We had good defensive control of the game, we worked hard, and we had a lot of opportunities to score.
Leading man: John Terry stood firm for Chelsea in front of Capello
'We obviously need to be more precise in front of goal, but these are little details. The general performance was good.
'Obviously we have to improve. We had so many chances to score, and we'll have to score. Obviously.
'But I see the team fresh and it's a good moment for us. We can improve, really, in the next games of the Champions League.
I think we have a squad that's strong enough to win it. All the players are fit. The team is strong enough.
'If we play at 100 per cent we have a possibility to get to the final stages of the Champions League.'
The wait goes on: ?50million substitute Fernando Torres is yet to open his Chelsea account
Ancelotti also insists the only reason Torres started on the bench against Copenhagen was to keep him fresh for Sunday's Barclays Premier League clash at Manchester City.
The ?50million striker has endured a frustrating time since joining the Blues in January, failing to find the net in any of his six appearances for the Londoners.
However, Ancelotti was keen to stress that Torres - like fellow substitutes Michael Essien and Florent Malouda - were only left out the starting line-up due to the importance of the upcoming match with City.
'The players not involved from the beginning tonight will play on Sunday,' he said. 'I wanted to maintain the players fresh and with good motivation.
'If we want to achieve something, we'll need all the players with good motivation.'
Ancelotti added: 'The only reason (he didn't start) is that we will have these players - Essien, Malouda and Torres - fresh for City.'
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Explore more:People: John Terry, Fabio Capello, Didier Drogba, Fernando Torres, Nicolas Anelka, Carlo Ancelotti, Michael Essien Places: Copenhagen, Denmark, United Kingdom, Wales