This retrospective study aimed at evaluating the recurrence rates of keratocystic odontogenic tumors (KCOTs) that were enucleated with and without the application of Carnoy's solution (CS). The study included 36 KCOTs treated between 1996 and 2006. Recurrence rates were investigated in correlation with the respective treatment method applied. Additionally, any damage to the inferior alveolar nerve associated with treatment was analyzed. Treatments consisted of enucleation with (38.9%) or without (61.1%) the application of CS. Median follow-up was 4.5 years. Single enucleation showed a recurrence rate of 50%, but the additional application of CS reduced the recurrence rate to 14.3%. No detrimental effects of CS on the mandibular nerve were detected. Enucleation plus the application of CS reduced the recurrence rate of KCOTs compared with simple enucleation. The application of CS did not cause any damage to the mandibular nerve.