The suction stress characteristic framework is a practical approach for relating the suction and the water-filled pore volume to the stress state of unsaturated soils. It predicts the effective stress by developing the suction stress characteristic curve from the soil-water retention curve. In this framework, the effective degree of saturation is usually calculated by the empirical water retention model of van Genuchten (published in 1980). In this paper, the use of a generalized soil-water retention model proposed by Lu in 2016, which differentiates the role of capillary and adsorption mechanisms, in the suction stress characteristic framework is studied. A redefinition of the effective degree of saturation is suggested, by choosing the retention state where capillarity approaches zero instead of the residual retention state. The validity of this assumption is examined using experimental data obtained by unsaturated shear strength and retention tests and datasets collected from the literature. The proposed definition is applicable for a variety of soils where capillarity is the dominant mechanism in producing suction stress within the range of suction 0–1500 kPa. In addition, it is observed that the generalized soil-water retention model presents a more realistic prediction of unsaturated shear strength compared with empirical water retention models.