This paper provides an overview of the problems pertaining to the sensing and identification of nonlinear dynamics of slider with clearance in sub-5 nanometer regime. This problem is complex in nature because the nonlinear dynamics of slider in sub-5 nanometer clearance regime involves different sources of nonlinear, nonstationary, and uncertainty characteristics. For example, the involved forces such as air-bearing force, intermolecular force, and contact forces are all nonlinear. The complex interface interaction with mobile lubricant makes the slider response be nonstationary. Furthermore, the interfacial parameters are available only by assumptions in the sense of statistics. Most of the reported studies either focused on physics-based simulations by using assumed interfacial parameters or focused on experimental characterization. The issues of the sensing and identification of the nonlinear dynamic properties of slider in nanometer clearance regime will be discussed with an aim at illustrating the promising approaches for improving the correlation between test data and physics-based simulations.