In the two-terminal reliability (2TR) problem a network and its elements can be in either a working or a failed state. However, many networks have elements that operate in more than two states. Multistate two-terminal reliability at demand level d (M2TRd ) is defined as the probability that system capacity, generated by multistate components, is greater than or equal to a demand of d units. This paper illustrates a fully multistate based algorithm that obtains the multistate equivalent of binary path sets, namely, multistate minimal path vectors (MMPV), for the M2TRd problem. The algorithm mimics natural organisms; a select number of arcs inherit information from other specific arcs contained in a special set called "primary set." Unlike other approaches, this algorithm does not depend on the a priori knowledge of binary path sets. The approach reduces the computations needed to obtain all MMPV. The algorithm is tested with literature examples.