We show, that classical Kaluza-Klein theory possesses hidden nematic dynamics. It appears as a consequence of 1 + 4-decomposition procedure, involving 4D observers 1-form λ. After extracting of boundary terms the, so called, "effective matter" part of 5D geometrical action becomes proportional to square of anholonomicity 3-form λ ∧ dλ. It can be interpreted as twist nematic elastic energy, responsible for elastic reaction of 5D space-time on presence of anholonomic 4D submanifold, defined by λ. We derive both 5D covariant and 1 + 4 forms of 5D nematic equilibrium equations, consider simple examples and discuss some 4D physical aspects of generic 5D nematic topological defects.