The purpose of this article is to review the advantages and disadvantages of using Minimum Data Set (MDS) data for nursing research, the psychometric characteristics of the MDS 2.0, and threats to the validity of its psychometric characteristics. The defined major advantages of the MDS are: (a) it provides continuous evaluation of residents' health and functional status, and (b) it enables facility evaluation at the nursing home level. The reviewed articles from the literature report that MDS 2.0 has moderate to moderate/high validity and reliability; however, the psychometric properties of MDS 2.0 are still controversial, mainly because the instrument has failed to identify depression in older nursing home residents.