Moderate resolution imaging spectroradiometer (MODIS) continues to be an important instrument for NASA’s earth observing system. Terra and Aqua MODIS have produced more than 22 and 20 years of global datasets that have significantly helped scientists better understand the Earth’s systems, respectively. The MODIS level-1B (L1B) algorithms use the uncalibrated, geolocated Earth scene observations as input and convert the instrument response into calibrated reflectance and radiance, which are used to generate the downstream science products. The sustained calibration and characterization activities undertaken by the MODIS characterization support team have resulted in several upgrades to the L1B algorithms to maintain accurate calibration in the data products. We present an overview of the L1B algorithm designated as Collection 7. Various algorithm enhancements both in the reflective bands and thermal bands characterization are currently under science testing and evaluation. Once applied in data processing (projected in early 2023), they are expected to manifest in improved science products, both in terms of radiometric accuracy and long-term stability.