The impact of the model-output vertical resolution on the moist static energy (MSE) budget associated with the Madden-Julian Oscillation (MJO) is examined. To achieve this objective, we perform the MSE budget analysis employing reanalysis data at different vertical resolutions: raw output layers, six standard layers as stipulated by the CMIP6 model requirements, high resolution in the upper troposphere, and high resolution in the lower troposphere. Results show that the data with only six layers results in a significant budget residual, consistent with the CMIP6 models observed. Moreover, the data with high resolution in the upper troposphere capture more realistic moist processes than data with high resolution in the lower troposphere. The budget residuals amplify with the rainfall anomalies and correspond to an overestimated vertical MSE advection. The leading bias source is associated with a strong vertical gradient of mean-state dry static energy (DSE) in the upper troposphere, which interacts with anomalous vertical velocity and thus leads to more MSE transport. Unrealistic vertical profiles of mean-state DSE and convection are also observed in the CMIP6 models. Examination of the same analysis using the DYNAMO field campaign shows that budget residuals are evident in low vertical resolution data, yet they correspond to an underestimated vertical MSE advection. The results from these datasets indicate that existing MSE budget residuals in the CMIP6 models are partially attributed to the low vertical resolution data.