A differential item functioning (DIF) detection method for testlet-based data was proposed and evaluated in this study. The proposed DIF model is an extension of a bifactor multidimensional item response theory (MIRT) model for testlets. Unlike traditional item response theory (IRT) DIF models, the proposed model takes testlet effects into account, thus estimating DIF magnitude appropriately when a test is composed of testlets. A fully Bayesian estimation method was adopted for parameter estimation. The recovery of parameters was evaluated for the proposed DIF model. Simulation results revealed that the proposed bifactor MIRT DIF model produced better estimates of DIF magnitude and higher DIF detection rates than the traditional IRT DIF model for all simulation conditions. A real data analysis was also conducted by applying the proposed DIF model to a statewide reading assessment data set. (Contains 2 tables and 2 figures.)