Objectives: Over 35 000 people live in residential aged care facilities (RACFs) in New Zealand. Texture‐modified diets (TMDs) are commonplace. They are associated with malnutrition. The aim of this study was to characterise TMD prevalence and practice in RACFs. Methods: Data from 35 460 residents were extracted from the interRAI™ database. Mealtime observations (including 459 residents), meal audits (IDDSI, 2018) and menu audits (Dietitians New Zealand Menu Audit Tool for RACFs 2013) were completed at 10 RACFs. Results: One‐third of residents were on TMDs. Half the residents ate full meals. Feeding assistance was more common in residents on TMDs compared to those on regular diets (P < 0.001). The majority of pureed meals met IDDSI standards; none of soft and bite‐sized meals complied. TMD carbohydrate and protein servings did not comply with standards. Conclusions: Texture‐modified diets reflect 1/3 of meals produced in RACFs. This study provides insight into TMD use in RACFs and highlights service gaps and training opportunities.