Abstract The Madden–Julian oscillation (MJO) is a key source of predictability in the subseasonal time scale (weeks to months) and influences a wide range of weather and climate phenomena. Although there have been enormous gains in simulating the MJO, many climate and forecast models still have biases in MJO behavior and structure. In this study, we examine the MJO in the Navy Earth System Prediction Capability (Navy ESPC) forecasts performed for the Subseasonal Experiment (SubX) using process-based diagnostics and a moisture budget analysis that uses wavenumber–frequency filtering to isolate the MJO. The MJO in the Navy ESPC is too strong in both boreal winter and summer. This amplitude bias is driven by biases in the vertical moisture advection in the Navy ESPC, which is too strong and deep, driven by a more bottom-heavy vertical motion profile and too steep lower-tropospheric vertical moisture gradient. Additionally, the convective moisture adjustment time scale in the Navy ESPC is faster than observed, such that for a given moisture anomaly the precipitation response is greater than observed. In the Navy ESPC, the MJO propagation shows strong agreement with observations in the Indian Ocean, followed by too rapid propagation east of the Maritime Continent in both seasons. This MJO acceleration east of the Maritime Continent is linked to an acceleration of moisture anomalies driven by biases in anomalous moisture tendency. The mechanisms that drive this bias have seasonal differences, with excess evaporation in the western Pacific dominating in boreal winter and horizontal moisture advection dominating in boreal summer.