The new developments in computer technology are changing the way training professionals look at computer-assisted instruction (CAI). Nursing educators and practitioners can plan on CAI capabilities that will be both possible and economical as well as within the reach of most organizations. Health care delivery may not be in a position to forego multimedia training as part of its repertoire. In this article, we review interactive video instruction as a multimedia tool in nursing education with an emphasis on the new developments in hardware and software technology. In particular, we examine the changing role of CD-ROM technology and how it has become a tool to change the face of CAI. We define the current status and future trends in CAI and interactive video instruction for nursing education. Several key definitions are introduced to reflect the new direction of multimedia in nursing education.