TCAS III seeks to enhance TCAS II by providing resolution advisory (RA) capability in the horizontal plane. Additionally, elimination of nuisance RAs through the use of miss distance filtering (MDF) are sought to make TCAS more compatible within the airspace. Both functions (horizontal RAs and MDF) are enabled with accurate estimates of the horizontal miss distance. TCAS III estimates of miss distance rely on range and bearing measurements derived from intruder aircraft replies. Large errors in the TCAS bearing measurement can be introduced by the airframe structure and other antennas in the vicinity of the TCAS antenna. These large bearing errors can result in large miss distance estimation errors, which will directly affect the performance of the horizontal RA and MDF operation. In evaluating the performance of the bearing measurements, measurements of the bearing error were used in a simulation of TCAS III surveillance and collision avoidance functions to assess their effect on performance. The performance was evaluated by examining (1) the expected percentage of horizontal RAs issued, (2) the expected reduction in nuisance RAs by the MDF, and (3) the reliability of the monitoring process during a horizontal RA maneuver.