The mechanical integrity of the separator is critical to the reliable operation of a battery. Due to its minimal thickness, compression experiments with a single/a few layers of separator are difficult to perform. In this work, a capacitance based displacement set-up has been developed for the measurement of the through thickness direction (TTD) compression stress-strain behavior of the separator and the investigation of its interaction with the electrode. The experiments were performed for a stack of two layers of Celgard 2400 separator, NMC cathode, and separator/NMC cathode/separator stack in both dry and wet (i.e. submersed in dimethyl carbonate DMC) conditions. The experimental results reveal that the separator compression modulus can be significantly affected by the presence of DMC. The iso-stress based rule of mixtures was used to compute the compressive stress-strain curve for the stack from that of the separator and NMC layer. The computed curve agreed with the experimental curve reasonably well up to about 0.16 strain but deviated significantly to a softer response at higher strains. The results suggest that, in the stack, the TTD compressive deformation of the separator is influenced by the NMC cathode.