Arthroscopic treatment of anterior shoulder instability has evolved significantly during the past decade. Currently, most techniques include the use of suture and suture anchors. A successful outcome is highly dependent on accurate patient selection. Preoperative evaluation, examination with the patient under anesthesia, and defining the pathoanatomy by a thorough arthroscopic examination determine the most effective treatment strategy. Technical skills include the surgeon's ability to accomplish anchor placement, suture passage, and arthroscopic knot tying. Various instruments and techniques are available to facilitate arthroscopic reconstruction. In properly selected patients and with good surgical technique, outcomes should approximate or exceed traditional open stabilization techniques.