Current methods for olfactory assessment are often time-consuming and necessitate the involvement of an examiner for both administration and documentation of responses. This study aimed to evaluate the clinical utility of a novel digital olfactory device, the MultiScent-20 universal odor identification test (Multiscent-IT), in distinguishing individuals with olfactory dysfunction from those with normal olfactory function. It was conducted and reported in accordance with the Strengthening the Reporting of Observational Studies in Epidemiology (STROBE) statement for case-control studies. The test was administered to patients with hyposmia (cases) and normosmic volunteers (controls). A statistically significant difference was observed in the total test scores between cases (9.6 ± 4.5) and controls (13.2 ± 1.9), p = 0.01. The test performance, defined as (total score/total time) x 100, was significantly lower in cases (1.9 ± 1.4) compared to controls (3.2 ± 1), p = 0.016. Significant correlations were identified between the Multiscent-IT score and the Sniffin’ Sticks threshold score (p = 0.009, r = 0.524), as well as the Portuguese version of the Olfactory Disorders Questionnaire (PT-ODQ) score (p = 0.013, r = -0.423). These findings indicate that the Multiscent-IT is an effective tool for differentiating between individuals with and without olfactory dysfunction in clinical settings.