Enables muramyl dipeptide binding activity. Involved in several processes, including negative regulation of macrophage apoptotic process; positive regulation of macromolecule metabolic process; and positive regulation of prostaglandin-E synthase activity. Acts upstream of or within several processes, including positive regulation of intracellular signal transduction; regulation of gene expression; and response to bacterium. Predicted to be located in several cellular components, including Golgi apparatus; basolateral plasma membrane; and phagocytic vesicle. Predicted to be anchored component of plasma membrane. Predicted to be part of protein-containing complex. Predicted to be active in cytosol. Used to study inflammatory bowel disease 1. Human ortholog(s) of this gene implicated in several diseases, including Blau syndrome; autoimmune disease (multiple); gastrointestinal carcinoma; intestinal disease (multiple); and lung disease (multiple). Orthologous to human NOD2 (nucleotide binding oligomerization domain containing 2). [provided by Alliance of Genome Resources, Apr 2022]