diff --git a/Orange/widgets/unsupervised/owmds.py b/Orange/widgets/unsupervised/owmds.py
index d42fcf082a3..f7eac289f32 100644
--- a/Orange/widgets/unsupervised/owmds.py
+++ b/Orange/widgets/unsupervised/owmds.py
@@ -19,6 +19,7 @@
 import Orange.distance
 from Orange.data.domain import filter_visible
 import Orange.misc
+from Orange.misc.flagged_data import create_flagged_table, FLAGGED_SIGNAL_NAME
 from Orange.widgets import widget, gui, settings
 from Orange.widgets.utils import colorpalette, itemmodels
 from Orange.widgets.utils.sql import check_sql_input
@@ -101,7 +102,7 @@ class OWMDS(OWWidget):
               ("Data Subset", Orange.data.Table, "set_subset_data")]
 
     outputs = [("Selected Data", Orange.data.Table, widget.Default),
-               ("Data", Orange.data.Table)]
+               (FLAGGED_SIGNAL_NAME, Orange.data.Table)]
 
     #: Initialization type
     PCA, Random = 0, 1
@@ -1041,13 +1042,14 @@ def commit(self):
             elif self.output_embedding_role == OWMDS.MetaRole:
                 output.metas[:, -2:] = embedding.X
 
-        self.send("Data", output)
         if output is not None and self._selection_mask is not None and \
                 numpy.any(self._selection_mask):
             subset = output[self._selection_mask]
         else:
             subset = None
         self.send("Selected Data", subset)
+        self.send(FLAGGED_SIGNAL_NAME,
+                  create_flagged_table(output, self._selection_mask))
 
     def onDeleteWidget(self):
         super().onDeleteWidget()
diff --git a/Orange/widgets/unsupervised/tests/test_owmds.py b/Orange/widgets/unsupervised/tests/test_owmds.py
new file mode 100644
index 00000000000..2c4168a4778
--- /dev/null
+++ b/Orange/widgets/unsupervised/tests/test_owmds.py
@@ -0,0 +1,53 @@
+# Test methods with long descriptive names can omit docstrings
+# pylint: disable=missing-docstring
+import random
+import numpy as np
+from PyQt4.QtCore import QEvent
+from Orange.data import Table
+from Orange.misc.flagged_data import FLAGGED_SIGNAL_NAME, FLAGGED_FEATURE_NAME
+from Orange.distance import Euclidean
+from Orange.widgets.unsupervised.owmds import OWMDS
+from Orange.widgets.tests.base import WidgetTest
+
+
+class TestOWMDS(WidgetTest):
+    def setUp(self):
+        self.widget = self.create_widget(OWMDS)
+        self.iris = Table("iris")
+        self.iris_distances = Euclidean(self.iris)
+
+    def test_outputs(self):
+        self.send_signal("Distances", self.iris_distances)
+        self.widget.customEvent(QEvent(QEvent.User))
+        self.widget.commit()
+
+        # check selected data output
+        self.assertIsNone(self.get_output("Selected Data"))
+
+        # check flagged data output
+        flagged = self.get_output(FLAGGED_SIGNAL_NAME)
+        self.assertEqual(0, np.sum([i[FLAGGED_FEATURE_NAME] for i in flagged]))
+
+        # select data points
+        points = random.sample(range(0, len(self.iris)), 20)
+        self.widget.select_indices(points)
+        self.widget.commit()
+
+        # check selected data output
+        selected = self.get_output("Selected Data")
+        self.assertEqual(len(selected), len(points))
+
+        # check flagged data output
+        flagged = self.get_output(FLAGGED_SIGNAL_NAME)
+        self.assertEqual(len(selected),
+                         np.sum([i[FLAGGED_FEATURE_NAME] for i in flagged]))
+
+        # compare selected and flagged data domains
+        selected_vars = selected.domain.variables + selected.domain.metas
+        flagged_vars = flagged.domain.variables + flagged.domain.metas
+        self.assertTrue(all((var in flagged_vars for var in selected_vars)))
+
+        # check output when data is removed
+        self.send_signal("Distances", None)
+        self.assertIsNone(self.get_output("Selected Data"))
+        self.assertIsNone(self.get_output(FLAGGED_SIGNAL_NAME))