Multimodal Large Language Models (MLLMs) have shown impressive video content understanding capabilities but struggle with fine-grained motion comprehension. To comprehensively assess the motion understanding ability of existing MLLMs, we introduce FAVOR-Bench, which comprises 1,776 videos from both ego-centric and third-person perspectives and enables assessment through both close-ended and open-ended tasks. For close-ended evaluation, we carefully design 8,184 multiple-choice question-answer pairs spanning six distinct sub-tasks. For open-ended evaluation, we employ the GPT-assisted evaluation and develop a novel cost-efficient LLM-free assessment method, where the latter can enhance benchmarking interpretability and accessibility. Comprehensive experiments with21 state-of-the-art MLLMs reveal significant limitations in their ability to comprehend and describe detailed temporal dynamics in video motions. To alleviate this limitation, we further build FAVOR-Train, a dataset of 17,152 videos with fine-grained motion annotations. Finetuning Qwen2.5-VL on FAVOR-Train yields consistent improvements on motion-related tasks across TVBench, MotionBenchand our FAVOR-Bench. Our assessment results demonstrate that the proposed FAVOR-Bench and FAVOR-Train provide valuable tools for the community to develop more powerful video understanding models.