The authors present a new fully arthroscopic technique for the treatment of patellofemoral instability consisting of plication of the medial patellar retinaculum and release of the lateral patellar retinaculum. The indication for this procedure is not only acute patellar luxation, but also recurrent patellar luxation and subluxation. The procedure has been performed on 17 patients, 6 male and 11 female, between the ages of 14 and 27 years. The indication for surgical arthroscopic treatment was patellar instability in 3 patients, acute patellar luxation in 4, and recurrent patellar luxation in 10 patients. Postoperative results after follow-up of 12 to 26 months have been good with no recurrence of subluxation or luxation. This procedure is a valuable technique for treating patellar maltracking and instability and acute and recurrent patellar luxation, particularly in adolescents and young adults.